Disclosure under Reg. 30 - Subsequent Disclosure for letters received from Cananra Bank for RCOM & RTL
RCOM · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Canara Bank has informed Reliance Communications Limited (RCOM) and its subsidiary Reliance Telecom Limited (RTL) that their accounts have been classified as 'fraud' and will be reported to the RBI for reflection in the Central Fraud Registry. The decision is based on a BDO India LLP forensic audit (covering FY2013-2017) which found that out of Rs. 31,580 crores in bank loans received by RCOM, RITL and RTL cumulatively, Rs. 13,667.73 crores were used to repay other bank loans and Rs. 12,692.31 crores were diverted to connected parties, with charges (Rs. 49,111 crores) far exceeding actual assets (Rs. 26,163 crores). RCOM's sanctioned facilities total Rs. 1,790 crores and RTL's total Rs. 100 crores (10,000 lakhs), both already classified as NPAs back in 2017. RCOM is under Corporate Insolvency Resolution Process (CIRP) since June 2019 with a resolution plan awaiting NCLT approval. The Resolution Professional's objections, including claims of immunity under Sections 14 and 32A of the IBC, were rejected by Canara Bank, which relied on a July 2025 NCLT ruling in the Rolta India case allowing such classification during ongoing CIRP.
This is a strongly negative development that deepens RCOM's troubles — the fraud tag could further complicate its already-stalled insolvency resolution process, reduce creditor recoveries, and prolong uncertainty for shareholders. For existing equity holders, the stock remains effectively worthless, and the classification adds another layer of risk to the resolution plan awaiting NCLT approval.