Intimation under Reg. 30 of SEBI (LODR) Regulations 2015 - Letter received from Canara Bank
RCOM · price
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Awaiting price reaction for this filing.
Reliance Communications (RCOM) has informed the stock exchanges that Canara Bank, in a letter dated February 27, 2026, has classified the credit facilities of its subsidiary Reliance Telecom Limited (RTL) as 'fraud' and ordered that RCOM be reported to the RBI's Central Fraud Registry. The two term loan accounts at Canara Bank total Rs. 100 crore (Rs. 6,000 lakhs sanctioned in March 2013 and Rs. 4,000 lakhs in December 2014) and have been non-performing assets since June 29, 2017. A forensic audit by BDO India LLP (covering FY2014–FY2017) flagged alleged irregularities including diversion of bank funds to connected parties, suspicious transactions with entities like Netizen, and charges exceeding total assets. RCOM, already under corporate insolvency resolution process (CIRP) since June 2019, is contesting the fraud classification citing moratorium and Section 32A protection under the IBC, but Canara Bank has rejected these arguments, relying on a recent NCLT ruling (Rolta India case) that fraud classification is a regulatory action permissible during CIRP.
This is a significant negative development that adds a formal fraud tag to RCOM/RTL in RBI's Central Fraud Registry, which could complicate the ongoing insolvency resolution and weigh on any revival prospects. For shareholders, it reinforces the distressed nature of the stock and the uncertainty around the pending NCLT-approved resolution plan.