SBI Tags Reliance Communications’ Loan Account A Fraud

NEW DELHI (IANS)- The State Bank of India (SBI) has decided to report Reliance Communications’ loan account as “fraud”, a case that dates back to August 2016.

Reliance Communications confirmed this development in an exchange filing, stating that the disclosure aligns with Securities and Exchange Board of India (SEBI) rules.

Reliance Communications, part of the Anil Ambani-led Reliance Group, is currently undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.

“A resolution plan has been approved by the committee of creditors of the Company in accordance with the Code and is presently awaiting approval of the National Company Law Tribunal, Mumbai Bench,” the exchange filing further noted.

The filing clarified that the credit facilities and loans referenced in the SBI letter pertain to the period prior to the Corporate Insolvency Resolution Process (CIRP). As per the Code, these are required to be resolved either through a resolution plan or in liquidation.

The SBI had previously issued show-cause notices to the company in December 2023, March 2024, and September 2024. The nation’s largest lender reportedly found that the company failed to adequately explain its breaches of loan terms and did not sufficiently address questions regarding irregularities in how the account was managed.