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RCom said that it has received a letter from Bank of Baroda on September 2, informing the decision to declare the loan accounts of the company and its promoter Anil Ambani as fraud.
Reliance Communications faces fraud allegations over decade-old loans
New Delhi: After State Bank of India and Bank of India, now Bank of Baroda has also declared the loan accounts of bankrupt Reliance Communications (RCom) and Anil Ambani as fraud. This action has been taken on the basis of alleged misuse of loans which were given almost a decade ago.
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RCom said that it has received a letter from Bank of Baroda on September 2, informing the decision to declare the loan accounts of the company and its promoter Anil Ambani as fraud. The bank had classified these accounts as non-performing assets (NPAs) in 2017 itself. Bank of Baroda had extended a total loan facility of Rs 1,600 crore and Rs 862.50 crore to RCom, of which about Rs 1,656.07 crore remained as on August 28.
RCom is undergoing a corporate insolvency resolution process to regain its control and repay its liabilities. However, Bank of Baroda has clarified that there is no active repayment plan approved by NCLT at this time.
Anil Ambani’s Reliance Communications in trouble; SBI declares loan account as ‘Fraud’
The fraud declared by the bank is based on the report of the forensic audit and its findings. Anil Ambani's spokesperson has linked this action to cases more than 12 years old. He said that Ambani has denied all the allegations and lawsuits and he will take necessary steps after taking legal advice. Anil Ambani served as a non-executive director on the board of RCom from 2006 to 2019.
