The Mumbai bench of the National Company Law Tribunal (NCLT) on Monday admitted a petition moved by the Reserve Bank of India (RBI) to initiate insolvency proceedings against Anil Ambani’s Reliance Capital Ltd (RCL).

The bench comprising Pradeep Narhari Deshmukh and Kapal Kumar Vohra also confirmed the appointment of Y. Nageswar Rao as the administrator of the non-bank lender which is registered as a core investment company. Last week, the central bank had filed an application with the tribunal for the initiation of insolvency proceedings.

At the hearing on Monday, the Mumbai bench of the NCLT reserved its order and later it admitted the RBI application. The administrator will now move to take the next steps that include looking after the affairs of the company, accepting claims from various creditors which will be followed by the committee of creditors submitting a resolution plan.

Under the Insolvency and Bankruptcy Code, the resolution should be completed within a maximum period of 330 days after it is initiated.

Appearing for the RBI, senior counsel Ravi Kadam said that private sector lender Yes Bank had subscribed to non-convertible debentures (NCDs) of Rs 987 crore issued by RCL on October 30, 2017. However, with RCL defaulting on these instruments, other events got triggered.

Reliance Capital had earlier said that it will fully co-operate with the administrator for the expeditious resolution of its debt, a stand that was reiterated by its counsel on Monday.

“The Company looks forward to expeditious resolution of its debt and continuation as a well capitalised going concern through the IBC process, in the overall interests of all its stakeholders, including lenders, customers, employees and shareholder,” a company release said.

On November 29, the banking regulator had superseded the board of Reliance Capital. The RBI said that this was done because of the defaults by RCL in meeting various payment obligations to its creditors and serious governance concerns which its board has not been able to address effectively. This is the third Anil Ambani group firm after Reliance Communications and Reliance Naval and Engineering undergoing insolvency proceedings.

A day later, the RBI appointed a committee to advise the administrator. The three-member advisory panel included Sanjeev Nautiyal, the former deputy managing director of SBI, Srinivasan Varadarajan, ex-DMD, Axis Bank and Praveen P Kadle, the former managing director & CEO, of Tata Capital Ltd.