Bank of Baroda has declared the loan accounts of insolvent Reliance Communications Ltd. and its erstwhile director Anil Ambani as “fraud”, according to an exchange filing on Thursday.
RCom, in the filing, said the loans referred to by Bank of Baroda pertain to the period prior to the corporate insolvency resolution process of the company.
As per the Insolvency and Bankruptcy Code, they are required to be “necessarily resolved as a part of a resolution plan or in liquidation, as the case may be”, it further said.
RCom pointed out that a resolution plan has been approved by the committee of creditors of the company in accordance with the IBC, and is presently awaiting approval of the National Company Law Tribunal.
The company is under the control of the resolution professional and Ambani has ceased to be its director, it noted.
The filing further said that RCom is seeking “legal advice” on the way forward with respect to the action taken by Bank of Baroda.
The public sector lender’s classification of RCom’s account as fraud adds to the growing list of troubles for Anil Ambani, who heads the Reliance Group. The embattled businessman is already under the Enforcement Directorate’s scanner for alleged loan fraud linked to his group entities.
