Union Bank classifies RCOM and subsidiary RTL loan accounts as fraud

Fraud confirmedRegulatory & Legal View source PDF Explain this filing

RCOM · price

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Price reactionminutes from the announcement price · days from the prior close

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Nifty Microcap 250market · in no size index; the smallest one is used-0.6%+1.5% vs market

On the reaction day the stock moved 1.5 pts more than Nifty Microcap 250, over the same two closes: a difference in percentage points, not a measure of what the filing did.

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AI summary

Union Bank classified RCOM and subsidiary RTL loan accounts as fraud under RBI guidelines. Credit facilities were Rs 1,550 crore with Rs 1,324.86 crore outstanding as NPA in 2017. BDO India LLP forensic audit found alleged loan misuse including about Rs 12,692 crore to related parties. RCOM is under CIRP since June 2019, with resolution plans approved by creditors awaiting NCLT approval. Company cites IBC protection. To be reported to RBI and Law Enforcement Agency.

Likely market impact

Company already under CIRP. Fraud classification may complicate resolution plan approval and cause further delays for shareholders. Section 32A may offer protection once plan is approved.