Loans to arms had Rs 1,755-crore impact on Reliance Capital in FY20: Audit

Nageswara Rao Y is the administrator of Reliance Capital

Loans given by Reliance Capital to various group entities during 2019-20 caused a financial impact of over Rs 1,755 crore, according to a transaction auditor report submitted to the administrator of the insolvency-bound firm.

The administrator of Reliance Capital appointed under the Insolvency and Bankruptcy Code, 2016, took assistance from transaction auditor BDO India LLP to conduct an investigation of the affairs of the company related to the company's transactions.

Based on the observations of the transaction auditor, the administrator on October 22, 2022, filed applications in respect of disbursements to a total of seven companies before the Mumbai bench of the