Reliance Communications Limited has informed the Exchange about Fraud/Default/Arrest
RCOM · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Punjab National Bank's Fraud Examination Committee has officially classified the loan account of Reliance Telecom Limited (RTL), a subsidiary of RCOM, as "fraud" effective April 22, 2026. The amount involved is Rs. 201.51 crore. The fraud involves misappropriation of funds through fictitious debtors, round-tripping of funds between RCOM, RTL, and related parties, and diversion of loans to connected parties. RTL transferred Rs. 221.93 crore to RCOM out of borrowed funds, with Rs. 110 crores invested in mutual funds by RCOM. Smt. Grace Thomas, a present director of RCOM and erstwhile director of RTL, has also been named in the fraud classification. Both RCOM and RTL are already under Corporate Insolvency Resolution Process (CIRP) under IBC 2016, with resolution plans approved by committees of creditors and awaiting NCLT Mumbai approval. PNB will report this fraud classification to RBI as per regulatory requirements.
This fraud classification adds to the regulatory complications for RCOM and RTL, which are already under insolvency proceedings. However, both companies are protected under Section 32A of IBC from liabilities for offences committed prior to CIRP commencement. The fraud classification primarily affects the resolution process and any potential recovery for creditors, but does not materially change the financial position given the ongoing CIRP.