Public sector lender Bank of Baroda has classified the loan accounts of Reliance Communications (RCom) and its promoter and director, Anil Ambani, as ‘fraud’. Reacting to the development, Ambani has strongly denied all allegations.
In a statement issued on his behalf, a spokesperson said the bank’s action pertains to matters dating back more than 12 years, around 2013, as per disclosures and records in the public domain.
The spokesperson emphasized that Anil Ambani served only as a Non-Executive Director on Reliance Communications’ board from its inception in 2006 until his resignation in 2019.
“He was never an Executive Director or a Key Managerial Personnel (KMP) of the company, and had no role whatsoever in the day-to-day operations or decision-making of the company,” the statement noted.
“He was never an Executive Director or a Key Managerial Personnel (KMP) of the company, and had no role whatsoever in the day-to-day operations or decision-making of the company,” the statement noted.
It further highlighted that RCom’s debt was held by a consortium of 14 banks, and after more than a decade, select lenders have initiated proceedings in a “staggered and selective manner” against Ambani.
Currently, RCom is under the supervision of a Committee of Creditors led by SBI and managed by a Resolution Professional. The Committee had unanimously approved a resolution plan in March 2020. However, the matter has been pending before the NCLT, the Supreme Court, and other judicial forums for the past six years, with lenders yet to complete the resolution process.
“Mr. Anil D. Ambani categorically denies all allegations and charges and shall pursue remedies available to him in accordance with legal advice,” the spokesperson added.
Reliance Infrastructure’s Clarification
Anil Ambani clarifies on Bank of Baroda labelling Reliance Communications’ loan as ‘Fraud’
In a separate filing, Reliance Infrastructure also clarified that the Bank of Baroda’s action to classify the loan account of Reliance Communications and Anil Ambani, as fraud has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of the company.
“Disclosures and records available in public domain indicate that aforesaid classification by Bank of Baroda for Reliance Communications and Mr. Anil Ambani, pertains to matters dating back 10 years ago. Mr. Anil D. Ambani is not on the Board of Reliance Infrastructure Limited for more than 3.5 years,” Reliance Infrastructure said in a release.
It added that Reliance Infrastructure is a separate and independent listed entity with no business or financial linkage to Reliance Communications.
“Reliance Infrastructure continues to focus on its business plans and remains committed to creating value for all stakeholders,” it said.
At 1:00 PM, Reliance Communications share price was trading 2.80% lower at ₹1.39 apiece on the BSE.
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