After the State Bank of India, state-owned Bank of India (BOI) has levelled accusations of fraud on Anil Ambani, chairman of Reliance Group, and the insolvent Reliance Communications, for failure to repay loan worth ₹700 crore after diverting the loans funds in 2016.
On August 22, RCom said it received a letter from the BOI, dated August 8, stating the bank’s decision to "to classify the loan accounts of the company, Anil Dhirajlal Ambani (promoter and erstwhile director of the company), and Manjari Ashok Kacker (erstwhile director of the company), as Fraud".
In the letter, the bank said RCom had turned NPA on June 30, 2017, with an outstanding of ₹724.78 crore.
The loan of ₹700 crore had been granted to Reliance Communications in August 2016 for its ongoing capital and operational expenditure and repayment of existing liabilities. The bank said half of the sanctioned amount disbursed in October 2016 was invested in a fixed deposit, which was not permitted as per the sanction letter.
Also Read: CBI acts on SBI complaint, raids premises linked to Anil Ambani
Following a complaint by the State Bank of India (SBI) in June this year, alleging misappropriation of bank funds by entering into transactions that violated the terms of the loans, the Central Bureau of Investigation (CBI) initiated criminal proceedings against the Reliance Group chairman. On Saturday, the agency searched premises linked to Reliance Communications and Ambani's residence.
CBI said it has registered a complaint after the State Bank of India claimed a loss of ₹2,929.05 crore, resulting from the alleged misappropriation by Reliance Communications and Ambani.
Anil Ambani's spokesperson, in a statement, "strongly denied all allegations and charges" and said he "will duly defend himself".
"The complaint filed by SBI pertains to matters dating back more than 10 years. At the relevant time, Ambani was a non-executive director of the company, with no involvement in the day-to-day management," the spokesperson said.
"It is pertinent to note that SBI, by its own order, has already withdrawn proceedings against five other non-executive directors. Despite this, Ambani has been selectively singled out," he further added.
Reliance Communications in the latest filing said its subsidiary Reliance Telecom Ltd too has received a letter from Bank of India conveying the lender's decision to classify the loan accounts of the company, Grace Thomas (erstwhile director of RTL and present director of the company) and certain other persons as 'Fraud'.
Under banking laws, once an account is declared fraudulent, it must be referred to enforcement agencies for criminal action, and the borrower is barred from accessing fresh finance from banks and regulated institutions for five years.
"The Bank has been following up with the borrowers and guarantors for repayment of dues; however, they have failed and neglected to make repayment of the dues."
In April, Reliance Communications had disclosed that its total debt stood at ₹40,400 crore in March. Following unpaid loans, the company was admitted for insolvency and bankruptcy proceedings and is currently being managed under the supervision of a Committee of Creditors, led by SBI and overseen by a Resolution Professional.
Follow us
