RPower, Reliance Infra shares tumble up to 5% after SBI flags RCom loan as fraud
Tired of too many ads?
Remove Ads
Tired of too many ads?
Remove Ads
Shares of Reliance Power and Reliance Infrastructure tumbled in Thursday's trade after the State Bank of India (SBI) classified the loan account of Reliance Communications (RCom) as fraud, implicating the company's former director, Anil Ambani, Times of India reported.Reliance Power slipped 4.8% to Rs 64.75, while Reliance Infra hit the 5% lower circuit at Rs 377.45 on the BSE.According to RCom's disclosure dated July 1, SBI has informed the company of its intent to report Anil Ambani's name to the Reserve Bank of India (RBI), setting the stage for another legal battle amid the company's ongoing insolvency proceedings under the National Company Law Tribunal (NCLT).The fraud classification is based on a 2020 forensic audit by BDO, which found irregularities and prompted SBI's internal panel to act. Canara Bank had earlier classified the loan as fraud in November 2024, but the Delhi High Court later set aside that order.In its latest review, concluded on June 13, SBI's committee highlighted financial irregularities, including the alleged diversion of Rs 12,692 crore — about 41% of the total Rs 31,580 crore in loans — to connected parties. The report cited misuse of sanctioned funds, routing money through subsidiaries to mask transactions, and circular funding via inter-corporate deposits and intraday limits.RCom, currently managed by a resolution professional under the Insolvency and Bankruptcy Code (IBC), said the fraud classification would have 'NA' impact, citing protections available once a resolution plan is in place.Anil Ambani's legal team, Agarwal Law Associates, said SBI's action was passed ex parte and violated principles of natural justice. They argued that the show-cause notices were outdated under revised RBI norms, that Ambani held no executive role in the company's operations, and that the bank failed to share essential documents required for a proper response.The lawyers noted that similar notices had been withdrawn against other non-executive and independent directors, alleging Ambani had been unfairly singled out. They have requested the withdrawal of SBI's order and a personal hearing.The legal team also claimed the move defies several rulings by the Supreme Court, Bombay High Court, and RBI regulations, stating that Ambani's objections were ignored for nearly a year and that the bank failed to disclose the basis of its decision.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
28 minutes ago
- Indian Express
Mcap of 6 of top 10 valued firms erodes by Rs 70,325.5 cr; HDFC Bank, ICICI Bank major laggards
The combined market valuation of six of the top-10 valued firms eroded by Rs 70,325.5 crore last week, with HDFC Bank and ICICI Bank emerging as the worst-hit in line with a bearish trend in equities. Last week, the BSE benchmark Sensex dropped 626.01 points or 0.74 per cent. In the top-10 pack, Reliance Industries, State Bank of India, Infosys and Hindustan Unilever Ltd were the gainers, while HDFC Bank, Tata Consultancy Services (TCS), Bharti Airtel, ICICI Bank, Life Insurance Corporation of India (LIC) and Bajaj Finance faced erosion from their market valuation. HDFC Bank's valuation declined by Rs 19,284.8 crore to Rs 15,25,339.72 crore. ICICI Bank lost Rs 13,566.92 crore in its market valuation which stood at Rs 10,29,470.57 crore. The valuation of Bajaj Finance dropped by Rs 13,236.44 crore to Rs 5,74,977.11 crore and that of LIC diminished by Rs 10,246.49 crore to Rs 5,95,277.16 crore. TCS faced an erosion of Rs 8,032.15 crore from its market capitalisation (mcap) which stood at Rs 12,37,729.65 crore. The mcap of Bharti Airtel fell by Rs 5,958.7 crore to Rs 11,50,371.24 crore. However, the market valuation of Reliance Industries jumped Rs 15,359.36 crore to Rs 20,66,949.87 crore. Infosys added Rs 13,127.51 crore in its valuation to Rs 6,81,383.80 crore. The mcap of Hindustan Unilever climbed Rs 7,906.37 crore to Rs 5,49,757.36 crore and that of State Bank of India went up by Rs 5,756.38 crore to Rs 7,24,545.28 crore. In the ranking of top-10 firms, Reliance Industries retained the title of the most valued firm, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, LIC, Bajaj Finance and Hindustan Unilever Ltd.
Time of India
an hour ago
- Time of India
‘Delete my video': 21-year-old Ahmedabad woman ends life after being blackmailed with private clip; 2 booked for abetment, 1 held
A 21-year-old woman in Ahmedabad tragically ended her life after a personal video of her with an unknown person surfaced. She was emotionally distressed after one of her acquaintance circulated the video. AHMEDABAD: A 21-year-old woman in Chandkheda ended her life by jumping from terrace of friend's house. She was under severe emotional distress after she found a personal video of her with an unknown person. Assistant commissioner of police L Division, D V Rana, said that one M Kakwana has been arrested in this connection. According to the accused, he made the video with the consent of the girl. One more person, H Rabari, is absconding, police said. Chandkheda PI N G Solanki said that the deceased and Makwana were in a relationship for two years. You Can Also Check: Ahmedabad AQI | Weather in Ahmedabad | Bank Holidays in Ahmedabad | Public Holidays in Ahmedabad "A car belonging to a friend of Makwana was towed away, and he, along with his friend, went to retrieve the car in Kalol, where they met Rabari. Rabari had then took Makwana's mobile and found a nude video of the deceased. He transferred it to his mobile along with the deceased's phone number," said Solanki. A complaint of abetment to suicide was registered on Friday against Makwana and Rabari by the friend of the deceased, who stays in Chandlodia. The complainant met the deceased at a function, and they became close friends. The deceased shared everything with the complainant and informed her that she was in a relationship with Makwana for a long time, and they used to meet frequently. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Is it legal? How to get Internet without paying a subscription? Techno Mag Learn More Undo The complainant stated that on Wednesday, the deceased informed her that someone called her and claimed to have seen a nude video of her and Makwana. "He asked us to come to a hotel if we wanted to see the video. So, my husband, the deceased, and I went to the hotel near Vaishnodevi Circle," the complainant said. The complainant stated that Rabari showed the video and left the place. Later, Makwana sent a WhatsApp message to the deceased stating that he needed Rs 2,500. The complainant stated that the deceased decided to call Makwana, asking him to collect money, and then they would get the video deleted. The complainant stated that the deceased asked Makwana to delete her nude video from his phone, but he refused. Consequently, the deceased called a PCR van and went to Sola police station. "There, in the presence of the police, Makwana deleted the video, and the three of us parted ways." The complainant stated that earlier, Makwana also took Rs 6,000 from the deceased, which she gave him by mortgaging her chain. The chain was mortgaged to a person known to Makwana, the complainant stated. On Thursday, the deceased left for a friend's place and said she would return in the evening, but she did not return until late at night. The cops investigating the case said that on Thursday night, the deceased and the friend were sitting at a cafe in Ranip, and it was about 2am when the deceased wanted to go to Chandlodia. The friend of the deceased refused to let her go and said that his uncle was at home and she should sleep at his residence in a separate room. Later in the morning, the friend found that the deceased was not in her room, and had committed suicide.
India Gazette
an hour ago
- India Gazette
62 percent of GIM manufacturing investment commitments converted to project applications: MB Patil
Bengaluru (Karnataka) [India], July 6 (ANI): Karnataka Minister for Large and Medium Industries, MB Patil, stated on Saturday that Rs 3.4 lakh crore worth of formal project applications have been filed out of the 5.56 lakh crore investment commitments made for the manufacturing sector during the Global Investors Meet (GIM) - Invest Karnataka 2025. This amounts to a 62% conversion rate. Speaking at an exclusive session organised by the Confederation of Indian Industry (CII) in the presence of Union Minister for Commerce and Industry Piyush Goyal, MB Patil attributed this impressive conversion as a result of sustained post-MoU engagement with investors, ensuring that intent translates into tangible action. 'Companies such as Krones, Safran, TASL, and many others have already filed formal applications with the state, with several having already commenced groundwork. Additionally, with both IndiGo and Air India now operating MRO (Maintenance, Repair and Overhaul) facilities in Karnataka, alongside TASL's upcoming MRO unit and HAL's existing operations, Karnataka has truly earned its place as the 'MRO Capital of Asia',' Patil noted. Patil further stated that out of the total Rs 10.27 lakh crore worth of investment commitments received during the GIM, proposals valued at Rs 4.34 lakh crore or about 42 per cent, have already materialised into project applications. He positioned Karnataka as a reliable partner in the evolving global economic landscape. He said, 'As the world adopts the China+1 strategy and responds to uncertainties caused by global conflicts, Karnataka has emerged as a dependable and natural partner. We are building not just industrial parks, but self-contained ecosystems that are future-ready and innovation-driven.' The new State Industrial Policy, launched during the GIM, has been widely appreciated for its progressive and inclusive framework. The policy places a strong emphasis on sustainability by integrating decarbonisation goals, green regulatory frameworks, and dedicated promotion of green industrial practices. It also offers targeted additional incentives for Zone 1 and Zone 2 districts, supporting balanced regional development. (ANI)
