It may be recalled that the Enforcement Directorate (ED) registered a fresh case against RCom for an alleged Rs 2,929 crore loan fraud with the State Bank of India (SBI).
File Photo: IANS
The Central Bank Of India has issued a show-cause notice to Anil Ambani-linked Reliance Communications (RCom) asking the company to present reasons why its account must not be treated as “fraud”, according to a stock exchange filing made by RCom on Thursday.
It may be recalled that the Enforcement Directorate (ED) registered a fresh case against RCom for an alleged Rs 2,929 crore loan fraud with the State Bank of India (SBI). It has widened the scope of its ongoing money-laundering probe against the group companies linked to Reliance Anil Dhirubhai Ambani Group Chairman Anil Ambani.
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According to the Central Bank of India notice, the outstanding amounts comprise a Rs 280 crore term loan availed by RCom, Rs 20 crore term-loan facility provided to Reliance Telecom (RTL), and a Rs 100-crore performance bank guarantee furnished to RTL.
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As per the exchange filing, RCom has been provided with 21 days from the date of receipt of the notice to submit a written reply with a reason about why its loan accounts should not be officially declared as fraudulent and reported to the Reserve Bank of India (RBI).
The Central Bank of India show cause notice has come after a forensic audit conducted by BDO India LLP, which revealed that Reliance Communications (RCom), Reliance Infratel Ltd (RITL) and Reliance Telecom Ltd (RTL). collectively received a staggering Rs 31,580 crore in loan disbursements from various banks. The audit findings raised serious concerns over fund utilisation and adherence to compliance norms.
The Central Bank of India’s show-cause notice has also cited these findings and indicated possible diversion of funds as a reason for flagging the accounts as “fraudulent”.
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