Bank of India Flags Reliance Communications, Promoters’ Loans as Fraud

Bank of India has classified loan accounts of Reliance Communications, its promoter Anil Ambani, and former director Manjari Kacker as fraud, the telecom firm informed exchanges on Saturday. The company is under corporate insolvency resolution, with plans pending approval from the Mumbai bench of the National Company Law Tribunal.

The bank has also tagged loans of Reliance Communications’ unit Reliance Telecom, former director Grace Thomas, and certain other personnel as fraud. Reliance Communications’ account with Bank of India turned non-performing on 30 June 2017, with an outstanding of ₹7.25 billion. The reclassification followed allegations of fund diversion worth ₹3.50 billion in 2016, the filing said.

Earlier, State Bank of India in July and Union Bank of India in October had also classified Reliance Communications’ loan accounts, promoters, and directors as fraud.

Reliance Communications said that during the insolvency process it remains protected from legal proceedings, though it is seeking legal advice regarding possible action against company personnel.