The transfer is predicted to be adopted by different lenders who’ve given loans to Reliance Communications Limited (RCom).
Reliance Communications in a regulatory submitting mentioned that it has obtained a letter dated June 23, 2025 from the State Bank of India (SBI) to this impact.
SBI has determined to report the mortgage account of the corporate as ‘fraud’ and to report the title of Anil Ambani (erstwhile director of the corporate) to the RBI, as per the extant RBI tips, it mentioned.
As per the RBI tips, after a financial institution classifies an account as ‘fraud’, the lender ought to then report the fraud to RBI inside 21 days of detection and likewise report the case to CBI/Police.
According to the submitting, Reliance Communications and its subsidiaries obtained a complete mortgage of ₹31,580 crore from banks.
SBI, within the letter despatched to RCom, mentioned it has discovered a deviation within the utilisation of the loans involving a fancy net of fund actions throughout a number of group entities.
“We have taken cognisance of the responses to our Show Cause Notice and after due examination of the identical, it’s concluded that enough causes haven’t been offered by the respondent to clarify the non-adherence to the agreed phrases and situations of the mortgage paperwork or the irregularities noticed within the conduct of the account of RCL to the satisfaction of the financial institution,” it mentioned.
Accordingly, the letter mentioned, the Fraud Identification Committee of the financial institution has determined to categorise the mortgage account of RCL as fraud.
As per the RBI tips, the penal provisions are relevant to the fraudulent borrower, together with the promoter director and different whole-time administrators of the corporate.
In explicit, debtors who’ve defaulted and have additionally dedicated fraud on the account could be debarred from availing finance from banks, Development Financial Institutions, government-owned NBFCs, and so on., for a interval of 5 years from the date of full cost of the defrauded quantity.
After this era, it’s for particular person establishments to take a name on whether or not to lend to such a borrower and no restructuring or grant of further amenities could also be made within the case of fraud accounts.
As per the report of the Fraud Identification Committee, out of the overall mortgage, ₹13,667.73 crore, about 44 per cent, was utilized for the compensation of loans and different obligations.
An quantity of ₹12,692.31 crore, 41 per cent of the overall mortgage, was utilised to pay linked events.
According to the submitting, ₹6,265.85 crore was used for repaying different financial institution loans and ₹5,501.56 crore was paid to associated or linked events which weren’t aligned with sanctioned functions.
Further, a ₹250-crore mortgage from Dena Bank (meant for statutory dues) was not utilised as per the sanctioned use. The mortgage was diverted to RCom Group firm Reliance Communications Infrastructure Limited (RCIL) as an Inter-Corporate Deposit (ICD) and was later claimed to repay an External Commercial Borrowing (ECB) mortgage.
The committee discovered {that a} mortgage of ₹248 crore was sanctioned by IIFCL for assembly capital expenditure however RCom paid ₹63 crore to Reliance Infratel Limited (RITL) and ₹77 crore to RIEL for compensation of loans.
“But as a substitute of transferring the fund immediately to those firms, it was routed by means of RCIL. The purpose for that has not been given by administration or by Anil Ambani. These (Dena Bank and IIFCL mortgage use) look like misappropriation of funds and breach of belief,” the report mentioned.
The committee noticed potential routing of financial institution loans by RCom Group, together with cell tower agency Reliance Infratel Limited (RITL), telecom service firm Reliance Telecom Limited (RTL), Reliance Communications Infrastructure Limited (RCIL), Netizen, Reliance Webstore (RWSL), and so on.
The report mentioned RCom, RITL, and RTL engaged in ICD (inter-corporate deposit) transactions totalling ₹41,863.32 crore, of which solely ₹28,421.61 crore was traceable.
RCom used a ₹100-crore intraday restrict to cycle funds by means of group entities, together with RWSL, RTL, and RCIL a number of occasions in a single day.
These transactions don’t look like real or performed in a traditional course of enterprise. It seems that RCom has utilised intra-day limits to finance RWSL to pay assortment proceeds price ₹1,110 crore.
“As a consequence, debtors of RTL acquired diminished by that extent… transactions might be termed as manipulation of books of accounts by means of fictitious accounts,” the report mentioned.
The committee raised a query on fund transactions involving Netizens as “an try at diversion of funds by manipulation of books of accounts by means of fictitious accounts/fictitious entries”.
It is to be famous that RCom is beneath a company insolvency decision course of (CIRP) pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016.
With impact from June 28, 2019, its affairs, enterprise and property are being managed by, and the powers of the board of administrators are vested in, the Resolution Professional, Anish Niranjan Nanavaty, appointed by National Company Law Tribunal, Mumbai Bench, order dated June 21, 2019.
The credit score amenities or loans referred to within the letter from SBI dated June 23, 2025 pertain to the interval previous to the CIRP of the corporate and are required when it comes to the IBC, to be essentially resolved as part of a decision plan or in liquidation, because the case could also be.
No Comment! Be the first one.