Reliance Power: SBI’s Fraud Tag on RCom Doesn’t Affect Our Business

Reliance Power Ltd. on Thursday clarified that State Bank of India classifying the loan account of Reliance Communications Ltd. as fraud does not impact its business, financials or stakeholders. In an exchange filing, the company said it operates independently and has no business or financial linkages with Reliance Communications.

The clarification follows Reliance Communications’ disclosure that SBI’s fraud identification committee had flagged its account for fund diversion in a 2016 case and alleged manipulation of books. SBI also plans to report the account and former director Anil Ambani’s name to the Reserve Bank of India.

Reliance Power noted that Anil D. Ambani is not a director on its board, and therefore the matter has no bearing on its governance or operations.