SBI has classified Reliance Communications, Anil Ambani as ‘fraud’: Centre tells Parliament
The State Bank of India has classified Reliance Communications and its promoter-director Anil Ambani as “fraud” and is in the process of registering a complaint with the Central Bureau of Investigation, the Union government told Parliament on Monday.
In a written reply in the Lok Sabha, Minister of State for Finance Pankaj Chaudhary said that the entities were classified as fraud on June 13 in accordance with the Reserve Bank of India’s Master Directions on Fraud Risk Management and the Board-approved Policy on Classification, Reporting and Management of Frauds.
The minister added that the SBI reported the classification to the RBI on June 24. On July 1, the telecom firm informed the Bombay Stock Exchange about the fraud classification as part of its disclosure compliance.
The credit exposure of the SBI in Reliance Communications includes a fund-based principal outstanding amount of Rs 2,227.64 crore, along with an accrued interest and expenses with effect from August 26, 2016, and a non-fund based bank guarantee of Rs 786.52 crore, Chaudhary said.
He added that the telecom firm was undergoing the Corporate Insolvency Resolution Process under the 2016 Insolvency and Bankruptcy Code.
The code provides a legal framework to resolve insolvency cases and release non-performing assets quickly.
The minister added that the resolution plan was approved...
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