Reliance Communications Subsidiary's Loan Account Classified as 'Fraud' by SBI
Reliance Communications Ltd. has disclosed a letter received from State Bank of India (SBI) classifying the loan account of its subsidiary, Reliance Telecom Limited (RTL), as 'fraud'. The letter was received on March 13, 2026, and RTL is currently undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. The credit facilities/loan account pertain to the period prior to the CIRP of RTL and are required to be resolved as part of a resolution plan or in liquidation. The resolution professional of RTL has filed avoidance applications in terms of the Code, which are sub-judice. Upon approval of the resolution plan, RCOM and RTL shall have immunity against any liability for purported offences committed prior to the CIRP.
Key Highlights
- Reliance Communications Ltd. discloses a letter received from SBI classifying the loan account of its subsidiary, Reliance Telecom Limited (RTL), as 'fraud'.
- RTL is currently undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016.
- The credit facilities/loan account pertain to the period prior to the CIRP of RTL and are required to be resolved as part of a resolution plan or in liquidation.
- Avoidance applications have been filed by the resolution professional of RTL, which are sub-judice.
- Upon approval of the resolution plan, RCOM and RTL shall have immunity against any liability for purported offences committed prior to the CIRP.