Reliance Communications Limited has informed the Exchange about Fraud/Default/Arrest

Canara Bank has officially classified Reliance Communications Limited (RCOM) and its subsidiary Reliance Telecom Limited (RTL) as 'fraud' and will report them to the RBI's Central Fraud Registry. The classification relates to credit facilities of Rs. 1,790 crores for RCOM and Rs. 100 crores for RTL, both of which were already classified as non-performing assets (NPAs) back in 2017. A forensic audit by BDO India LLP (final report dated October 15, 2020) found that out of Rs. 31,580 crores collectively borrowed, around Rs. 12,692 crores were paid to connected parties, fictitious receivables were created, and potential siphoning happened through entities like Netizen Engineering. Both RCOM and RTL have been under the Corporate Insolvency Resolution Process (CIRP) since June 28, 2019, with their resolution plans approved by the Committee of Creditors but still awaiting NCLT clearance. The Resolution Professional's objections to the fraud tag were overruled by Canara Bank, which relied on a recent NCLT ruling in the Rolta India vs Bank of India case (July 2025) holding that banks can classify accounts as fraudulent even during ongoing CIRP.