Latest news with #RelianceCommunications
Scroll.in
2 days ago
- Business
- Scroll.in
SBI has classified Reliance Communications, Anil Ambani as ‘fraud': Centre tells Parliament
The State Bank of India has classified Reliance Communications and its promoter-director Anil Ambani as 'fraud' and is in the process of registering a complaint with the Central Bureau of Investigation, the Union government told Parliament on Monday. In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that the entities were classified as fraud on June 13 in accordance with the Reserve Bank of India's Master Directions on Fraud Risk Management and the Board-approved Policy on Classification, Reporting and Management of Frauds. The minister added that the SBI reported the classification to the RBI on June 24. On July 1, the telecom firm informed the Bombay Stock Exchange about the fraud classification as part of its disclosure compliance. The credit exposure of the SBI in Reliance Communications includes a fund-based principal outstanding amount of Rs 2,227.64 crore, along with an accrued interest and expenses with effect from August 26, 2016, and a non-fund based bank guarantee of Rs 786.52 crore, Chaudhary said. He added that the telecom firm was undergoing the Corporate Insolvency Resolution Process under the 2016 Insolvency and Bankruptcy Code. The code provides a legal framework to resolve insolvency cases and release non-performing assets quickly. The minister added that the resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal in Mumbai on March 6, 2020. The approval of the tribunal is awaited. The SBI had earlier classified the account and Ambani as 'fraud' in November 2020 and filed a complaint with the CBI in January 2021. However, the complaint was returned in view of a 'status quo' order passed on January 6, 2021 by the Delhi High Court, he added. The Supreme Court had in March 2023 mandated that lenders provide borrowers with an opportunity to represent themselves before classifying their accounts as fraud. In view of the order, the fraud classification in the account was reversed by the SBI in September 2023, the minister said. The reply added that the classification process was re-run and the account was once again classified as 'fraud' after due process as per a circular issued by the RBI on July 15, 2024. Last month, Reliance Communications in a regulatory filing said that it had received a letter on June 23 from the SBI on its decision to classify the loan account of the telecom firm as 'fraud' and to report Ambani to the RBI. In 2019, the telecom firm had said that it had decided to file for bankruptcy through the National Company Law Tribunal after failing to sell assets to pay up a debt of around Rs 45,000 crore.
Time of India
10-07-2025
- Business
- Time of India
Canara Bank erases 'fraud' tag from Anil Ambani's RCom loan
Public sector lender Canara Bank Thursday informed the Bombay High Court that it has withdrawn its order of classifying the Anil Ambani-promoted Reliance Communications loan account as 'fraudulent'. The division bench of Justice Revati Mohite Dere and Justice Neela Gokhale, after hearing the lender's views on the subject, disposed of the case. The detailed order was not uploaded until the publication of this report. Separately, the State Bank of India (SBI) has also classified the loan account of Reliance Communications as 'fraud.' Anil Ambani has also challenged that order in the Bombay High Court. Nishith Dhruva, managing partner of law firm MDP Legal, appearing for the Canara Bank, informed the court Thursday that the lender has decided to withdraw the fraud classification of Anil Ambani in the Reliance Communications' loan matter. The development comes in a writ petition filed by Anil Ambani against the lender, challenging its order of November 8 last year, which classified the loan account as 'fraud'. Canara Bank's order came in the wake of the Reserve Bank of India (RBI) master circular that permitted banks to declare any account as fraudulent and had also laid down guidelines for the purpose. Earlier in February, the court stayed a Canara Bank order that classified industrialist Anil Ambani's loan account as fraudulent. While granting interim, the court sought to know from the RBI what actions it proposed to take against the lenders for issuing orders declaring loan accounts as fraudulent without hearing the parties or borrowers, defying the master circular and Supreme Court rulings. The RBI decision on fraud risk management in banks was taken under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions of 2016. The RBI had also directed the banks to devise their own policies. Senior Counsel Gaurav Joshi, appearing for Ambani, during earlier hearings had argued that without observing the principles of natural justice and without hearing the petitioner (Anil Ambani), the order dated November 8, 2024 was passed mechanically and the same was communicated to the petitioner after more than a month i.e. on December 25, 2024, of the order being passed. As per the latest available data with the Insolvency & Bankruptcy Board of India (IBBI), Reliance Communications has admitted liabilities of about ₹94,105 crore. The company is currently undergoing the Corporate Insolvency Resolution Process (CIRP).
Indian Express
10-07-2025
- Business
- Indian Express
2024 order declaring Anil Ambani's loan account as ‘fraudulent' withdrawn, Canara Bank tells Bombay HC
The Canara Bank informed the Bombay High Court Thursday that it has withdrawn its 2024 order that classified industrialist Anil Ambani's loan account as fraudulent. The account was related to his firm Reliance Communications, which is under insolvency proceedings. On Thursday, taking note of the bank's submission, a bench of Justices Revati Mohite Dere and Neela K Gokhale disposed of Ambani's plea against the bank order, noting that nothing survived in the case for further consideration. The order was issued on November 8 last year in the light of a Reserve Bank of India (RBI) master circular that permitted banks to declare any account as fraudulent and laid down guidelines for the same. The high court stayed the order on February 7 this year. The court had then relied on the December 2024 order passed by another high court bench that stayed the effect of Canara Bank's decision classifying the loan account of Reliance Communications independent director Manjari A Kacker as fraudulent. It had questioned if the banks were not duty bound by the orders passed by the Supreme Court to follow principles of natural justice, including issuing notice to borrowers to give them opportunity to be heard before their account is classified as fraudulent under the master circular. 'Don't they (banks) have any accountability? Are they not duty bound to go through the orders passed by the Supreme Court from time to time?' the high court asked. Anil Ambani, in his plea, had claimed that he was informed about the said order a month after its issuance and was not given an opportunity of being heard before the bank. The RBI's decision on fraud risk management in banks was taken under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions of 2016. The RBI had also directed banks to devise their own policies. However, Ambani had claimed that Canara Bank had not yet formed an internal policy in this regard.
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Business Standard
07-07-2025
- Business
- Business Standard
Corporate 'fraud accounts' pose tough challenges for banking system
Indian banks are grappling with several prominent fraud accounts with banks such as State Bank of India (SBI) classifying Reliance Communications (RCom) under this category. SBI also reported former chairman of the group Anil Ambani to the Reserve Bank of India (RBI). In a reply to SBI via his law firm, Ambani said the action was taken ex parte and in violation of natural justice. Most of the earlier prominent fraud cases are under litigation. Here are the prominent ones:
Mint
04-07-2025
- Business
- Mint
Anil Ambani-owned Reliance Power, Reliance Infra share price rally up to 5%. Here's why
Anil Dhirubhai Ambani group (ADAG) stocks — Reliance Infrastructure and Reliance Power share price surged as much as 5 per cent in Friday's trading session after the company issued a clarification that the State Bank of India's (SBI) classification of Reliance Communications' loan account as fraudulent is unlikely to affect them. Reliance Power share price rose over 3.70 per cent to ₹ 66.90 apiece on the NSE. Meanwhile, Reliance Infrastructure share price gained over 4.65 per cent to ₹ 385.10 apiece. This clarification followed SBI's move to label the loan account of the bankrupt Reliance Communications as fraudulent, citing fund diversion allegations dating back to 2016. As per Indian banking regulations, once a loan is declared fraudulent, it must be reported to investigative agencies for potential criminal proceedings, and the concerned borrower is prohibited from obtaining further funding from banks and financial institutions for a minimum of five years. Reliance Communications revealed that its total debt amounted to ₹ 40,400 crore ($4.71 billion) as of March, as per a Reuters report. In a letter, SBI stated its intention to report Anil Ambani, a director at Reliance Communications, to the Reserve Bank of India in line with Indian banking regulations. A spokesperson for Reliance Communications said that Ambani is addressing the issue based on legal advice. In response, both companies asserted that SBI's move would have 'absolutely no impact' on their business operations, financial performance, shareholders, employees, or any other stakeholders. Both companies emphasised that they operate as distinct and independently listed entities, with no business or financial association with Reliance Communications. They also clarified that Anil Ambani holds no board position in either Reliance Infrastructure or Reliance Power. As a result, any measures taken concerning Reliance Communications do not affect the governance, management, or operations of Reliance Infrastructure or Reliance Power.
