Central Bank of India has declared the loan accounts of Reliance Telecom Ltd. as fraud, Reliance Communications Ltd. said on Tuesday. The company is seeking legal advice on the matter, according to a stock exchange filing.
RCom, part of the Anil Ambani Group, as well as RTL are undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. Resolution plans in respect of RCOM and RTL, have been approved by the committees of creditors of the RCOM as well as RTL respectively and awaiting approval of the National Company Law Tribunal.
The credit facilities mentioned by the PSU bank relate to the period before RTL’s CIRP and must be resolved through its resolution plan or liquidation, as per the Code,…