SBI Classifies Reliance Communications, Its promoter Anil Ambani As ‘Fraud’; To Lodge Complaint With CBI
RCom is undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. The resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal, or NCLT, Mumbai, on March 6, 2020, and NCLT approval is awaited.
The bank has also initiated the Personal Insolvency Resolution Process under IBC against Anil D. Ambani, and the same is being heard by NCLT, Mumbai, he said.
The bank had earlier classified the account and promoter Anil D. Ambani as ‘fraud’ on November 10, 2020, and filed a complaint with the CBI on January 5, 2021.
However, he said, the complaint was returned in view of the ‘status quo’ order dated January 6, 2021, by the High Court, Delhi.
Meanwhile, a Supreme Court judgement dated March 27, 2023, in the State Bank of India & Others vs. Rajesh Agarwal & Others case mandated that lenders provide borrowers with an opportunity to be represented before classifying their accounts as fraud.
According to him, the bank reversed the fraud classification in the account on September 2, 2023.
The fraud classification process was re-run, and the account was again classified as ‘fraud’ after following the due process as per RBI circular dated July 15, 2024.
In reply to another question, Chaudhary said there is no proposal to waive the outstanding agricultural loans under consideration with the Union Government.
However, he said, the Union Government has taken several measures to provide relief and to improve the economic conditions of farmers, which includes timely and adequate credit through the Kisan Credit Card, or KCC, under which a crop loan of up to Rs 3 lakh is provided at subsidised interest rates under the Modified Interest Subvention Scheme, or MISS.
