SBI, Union Bank, IOB mark RCom account as fraud

The State Bank of India (SBI), the Union Bank of India (UBI) and the Indian Overseas Bank (IOB) have marked Reliance Communication Ltd (RCOM) account as fraud, according to banking sources.

In addition to that, the SBI and the UBI have also marked Reliance Telecom Ltd (RTL) account as fraud. RTL is a 100 per cent subsidiary of RCOM.

Another RCOM subsidiary, Reliance Infratel Ltd’s account has also been marked as fraud by the SBI.

The latest move by the banks comes a couple of weeks after the NCLT Mumbai gave its approval to Reliance Infratel’s Resolution Plan.

Reliance Jio’s group company Reliance Digital Platform is the successful Resolution Applicant for Reliance Infratel Ltd.

The lenders will get Rs 4,400 crore from Reliance Digital.

Reliance Infratel has 43,000 towers and 172,000 km fibre network.

The Resolution Plan of RCOM and RTL is pending for an approval before the NCLT Mumbai. The lenders will recover around Rs 18,000 crore from the sale of these two companies to the UV Asset Reconstruction Company, who is the successful Resolution Applicant. IANS