Reliance Communications Limited has informed the Exchange about Fraud/Default/Arrest
RCOM · price
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Awaiting price reaction for this filing.
IDBI Bank's Fraud Examination Committee (FEC-I) has formally classified Reliance Communications Limited (RCOM) as 'fraud' based on a reasoned order dated October 20, 2025. The classification relates to a Rs. 750 crore term loan and alleged fund diversion of around Rs. 15,436 crore across RCOM, Reliance Telecom, and Reliance Infratel during FY2013-14 to FY2016-17, including suspicious transactions with Netizen Engineering (Rs. 5,525 crore), invoice financing of RITL (Rs. 8,515 crore), and circular routing of Letters of Credit worth Rs. 2,779 crore through Bank of Maharashtra. IDBI Bank plans to report this to the RBI and file complaints with law enforcement agencies, while continuing existing recovery and civil/criminal actions. RCOM is already under Corporate Insolvency Resolution Process (CIRP) since June 2019, and a resolution plan approved by 100% of the Committee of Creditors (including IDBI Bank) is awaiting NCLT approval. RCOM is seeking legal advice and claims protection under Section 14 and Section 32A of the Insolvency and Bankruptcy Code once the resolution plan is approved.
This is largely a procedural development for RCOM shareholders as the company has been under insolvency resolution since 2019 and trades only on speculative interest. The fraud classification relates to historical transactions predating the CIRP and does not directly impact the ongoing resolution plan, though it may complicate NCLT approval and could lead to criminal proceedings against the erstwhile management. Retail investors holding RCOM shares should note that recovery prospects remain tied to the pending NCLT approval of the resolution plan, and any criminal proceedings are targeted at the company's former directors, not current operations.