Union Bank classifies RCOM and subsidiary RTL loan accounts as fraud

Fraud confirmedEnforcement raidRegulatory & Legal View source PDF Explain this filing

RCOM · price

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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 of India has classified loan accounts of Reliance Communications (RCOM) and its subsidiary Reliance Telecom (RTL) as fraud based on a forensic audit by BDO India. RCOM outstanding was Rs 1,324.86 crore; RTL outstanding was Rs 35.76 crore. Both companies are under CIRP since June 2019. Fraud tag reported to RBI and law enforcement. Resolution plans await NCLT approval; IBC Section 32A may grant immunity once approved.

Likely market impact

Company already under insolvency. Fraud classification could complicate pending NCLT approval of its resolution plan, though Section 32A immunity may apply post-approval.