RBI appoints Venkat Nageswar Chalasani in Advisory Committee of Srei Group recast

The Reserve Bank of India (RBI) on June 23 appointed Venkat Nageswar Chalasani as a member of the Advisory Committee of debt-laden Srei Infrastructure Finance and Srei Equipment Finance, following the resignation of R Subramaniakumar.

Chalasani, whose appointment is tendered with immediate effect, was the former Deputy Managing Director of State Bank of India, the banking regulator said in a release.

Along with Chalasani, the Advisory Committee comprises T.T. Srinivasaraghavan, the former Managing Director of Sundaram Finance, and Farokh Subedar, the former Chief Operating Officer and Company Secretary of Tata Sons.

The advisory committee shall advise the administrator on the operations of Srei Infra and Srei Equipment Finance during the corporate insolvency resolution process, the RBI said.

Also read: SREI Equipment Finance says auditor found fraudulent transactions worth Rs 3,000 crore during FY20-21

The RBI had on October 4 superseded the Board of Directors of Srei Infra and Srei Equipment Finance, owing to governance concerns and defaults.

The central bank had cited governance concerns and the inability of both the companies to meet their debt obligations and hence, superseded their respective boards. Rajneesh Sharma, a former chief general manager of Bank of Baroda, was appointed as the administrator of the aforesaid companies.

Key lenders to Srei Infra include Union Bank of India, Punjab National Bank, Canara Bank, Indian Bank, and Bank of Baroda, among others. Key lenders to Srei Equipment Finance include Canara Bank, Union Bank of India, Punjab National Bank, State Bank of India, and Bank of Baroda, among others.