Srei Equipment Finance Limited (SEFL), a wholly owned subsidiary of Srei Infrastructure Finance Limited (SIFL), was registered as a NDSI and is currently classified as a Middle Layer NBFC as per RBI SBR guidelines. SEFL was a significant financier in the Construction, Mining and allied Equipment (CME) sector in India. In addition to CME, SEFL had also diversified into financing of tippers, IT and allied equipment, medical and allied equipment, farm equipment and other assets. These financial products and services comprised loans, for new and used equipment and leases.
The Reserve Bank of India vide its Press Release dated 4th October, 2021, had superseded the Board of Directors of Srei Equipment Finance Limited (SEFL) and had appointed Mr. Rajneesh Sharma as the Administrator.
The Resolution Plan submitted by M/s. National Asset Reconstruction Company Limited (NARCL) was approved by the National Company Law Tribunal, Kolkata vide Order dated August 11, 2023 (“Approved Resolution Plan”).
In terms of the Approved Resolution Plan the Board of Directors of the Company was re-constituted with effect from 26th February 2024, who took over the operations and management of the Company consequent to which the Implementation and Monitoring Committee stood dissolved. Mr Shamik Roy was appointed as the Chief Executive Officer (CEO) with effect from March 16, 2024.
No new business is envisaged in SEFL as per “Approved Resolution Plan” and the entire existing loan book portfolio and/or fixed assets/investments etc. which are meant for recovery and disposal have been retained/transferred in SEFL. The CEO under the overall directions of the Board has commenced recovery actions of the loan portfolio.
With the new management taking over the Company, a lot of work is underway on revamping the systems and procedures, Policies of the Company etc. Board level Committees and other Senior Level Committees have been formed to take decisions on major matters.
However, as per the Approved Resolution Plan (RP), SEFL would be focusing on recovery in existing portfolios and acting as stipulated in the Resolution Plan. Further this is corroborated by RBI, which has allowed SEFL to continue its Certificate of Registration for next 5 years from the date of approval of Resolution Plan with the limited objective of collection from its existing portfolio.