Latest news with #RCom
New Indian Express
10-07-2025
- Business
- New Indian Express
RCom account not fraud: Canara Bank tells Bombay HC
MUMBAI: In a dramatic turnaround and a likely setback to the State Bank's effort to recover its dues from RCom, the crippled telecom company that was promoted by Anil Ambani, state-run lender Canara Bank has informed the Bombay High Court that it has withdrawn its order classifying the loan as fraudulent. Following this disclosure, a bench of justices Revati Mohite Dere and Neela Gokhale on Thursday disposed of the petition filed by Ambani challenging the bank's order issued last year, saying 'nothing survives in it now,' and asked the bank to inform 'the withdrawal order to the Reserve Bank,' a PTI report quoting the judge said Thursday. In September 2024, Canara Bank became the first lender to classify the RCom account, which is has been in NCLT since 2019 and is yet to have a resolution, as fraudulent in its report to the Reserve Bank and the fraud classification though came out into the public domain only in November 2024 when the bank informed the exchanges. The crippled company owes more than Rs 40,000 crore to a slew of lenders led by SBI and the loans became NPAs since March 2017.
Economic Times
03-07-2025
- Business
- Economic Times
Anil Ambani-led Reliance units say SBI's fraud tag on RCom loan has no impact on their operations
Reliance Infrastructure and Reliance Power on Thursday clarified that the recent action by the State Bank of India to classify the loan account of Reliance Communications as fraud has absolutely no impact on the business operations and financial performance. They added that it also does not affect shareholders, employees, or any other stakeholders of Reliance Infrastructure and Reliance Power. SBI has classified the loan account of Reliance Communications (RCom) as fraud diversion of sanctioned loan amounts to pay connected parties, inter-company loan transactions and investments and misutilisationon of sales invoices. The bank will take further action against the company and its former promoter director, Anil Ambani by reporting them to the Reserve Bank of India (RBI), according to a letter posted on the stock exchanges. ALSO READ: RCom loan fraud: The one Reliance company that failed In its detailed notice to the company SBI said after the Supreme Court order in March 2023 which said that promoters of companies have to be given a hearing before they are declared as fraud, the bank reversed its 'fraud' tag on RCom and its promoters.'As part of the re-initiation of the process of fraud identification in the account, SCNs were served to the borrower and its promoters, directors dated December 20, 2023 for giving an opportunity of hearing in adherence to the principles of natural justice before deciding on identification and reporting of account as fraud…' SBI said in its letter. Another notice with a forensic audit report was sent to the promoters, directors again in March 2024 and another one in September 2024. The resolution professional had replied to the notices from SBI in January 2024, saying that nothing should constraint the bank from pursuing any action against hr erstwhile directors, management or employees of the company for fraudulent or actions of omissions. RCom has been under a corporate insolvency resolution process since 2019. In its statement, the company reminded investors that any loans linked to the period before insolvency must be handled within the resolution was at one point India's second-largest telecom operator. However, by 2019, the company was facing bankruptcy with billions of dollars in debt. It disclosed in April that as of March 2025, it had a total debt of 404 billion rupees ($4.71 billion). Besides management issues and intense competition, sectoral challenges such as price wars, heavy debt and plunging profitability which crippled India's telecom sector, also took their toll on fall of an Ambani company to such depths was not foreseeable more than two decades ago, when RCom was launched, because the names 'Reliance' and 'Ambani' had become synonymous with success.
Time of India
03-07-2025
- Business
- Time of India
RPower, Reliance Infra shares tumble up to 5% after SBI flags RCom loan as fraud
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. ( Disclaimer : Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
Business Upturn
03-07-2025
- Business
- Business Upturn
Anil Ambani-owned Reliance Infrastructure, Reliance Power fall over 3% after SBI tags RCom loan account as fraud
By Aditya Bhagchandani Published on July 3, 2025, 09:28 IST Shares of Reliance Infrastructure and Reliance Power declined over 3% in early trade on Wednesday after reports emerged that SBI moved to classify Reliance Communications' (RCom) loan account as fraud — a move that also implicates former director Anil Ambani. At 9:26 AM, shares of Reliance Infrastructure were trading at ₹382.50, down 3.59%, while Reliance Power was at ₹66.18, down 2.75% from the previous close. On July 1, RCom disclosed that SBI plans to report Ambani's name to the RBI as part of its action to flag the account as fraudulent. This follows a 2020 forensic audit that alleged a diversion of ₹12,692 crore (41% of total loans) through connected parties, misuse of sanctioned funds, and circular transactions to conceal facts. Ambani's lawyers argued that the order was passed ex-parte , breached principles of natural justice, and ignored objections for nearly a year. They added that Ambani, as a non-executive director, had no operational role and has been unfairly singled out even though similar notices were withdrawn against other directors. The matter adds another layer to RCom's ongoing insolvency proceedings. The company stated that the classification would have no impact, given protections under the Insolvency and Bankruptcy Code. As of 9:30 AM, Reliance Infrastructure traded at ₹382.50 and Reliance Power at ₹66.18. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
Business Upturn
03-07-2025
- Business
- Business Upturn
Reliance Communications stock in focus today as SBI classifies loan as ‘fraud', implicates Anil Ambani
By Aditya Bhagchandani Published on July 3, 2025, 08:40 IST Shares of Reliance Communications Ltd (RCom) are expected to remain in focus today after the company disclosed that State Bank of India (SBI) has moved to classify its loan account as fraud — a step that also implicates former director Anil Ambani. In a stock exchange filing on July 1, RCom said SBI intends to report Ambani's name to the Reserve Bank of India (RBI), sparking another round of legal battle amid the company's ongoing insolvency proceedings. The classification stems from a forensic audit conducted by BDO in 2020, which led SBI's fraud panel to flag the account. Notably, Canara Bank had declared the loan as fraud in November 2024, though that order was later overturned by the Delhi High Court. Ambani's legal team termed SBI's move 'ex parte' and in breach of natural justice, arguing that show-cause notices issued were outdated under revised RBI rules. They maintained that Ambani had no executive role at RCom during the period in question and accused SBI of failing to share key documents required for a response. SBI's June 13 review reportedly cited financial irregularities, including the alleged diversion of ₹12,692 crore — about 41% of total loans worth ₹31,580 crore — to connected parties. The findings claim sanctioned funds were misused, routed through subsidiaries, and masked via inter-company loans and circular transactions. RCom, currently under an NCLT-appointed resolution professional, stated that the classification would have 'no impact' given protections under the Insolvency and Bankruptcy Code. Ambani's lawyers further argued that SBI's decision defied rulings of the Supreme Court, the Bombay High Court, and RBI guidelines, and called for withdrawal of the order and a personal hearing. Meanwhile, RCom's shares were trading actively today as investors assessed the implications of the development. Ahmedabad Plane Crash Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.
