State Bank of India (SBI), India’s largest public-sector lender, has officially labelled Reliance Communications Ltd’s (RCom) loan account as “fraud.” Following this, two Reliance Group companies – Reliance Infrastructure and Reliance Power – have responded with public statements, aiming to clarify their stance and reassure stakeholders.
Meanwhile, trading in Reliance Communication shares was suspended on the stock exchanges, with the last traded price closing at Rs. 1.61 on 30th June on BSE. In a regulatory filing dated 1st July, Reliance Communications Limited informed that it had received a letter on 23rd June. The letter, addressed to the company and its former director, Anil Dhirajlal Ambani, stated that SBI had decided to report the company’s loan account as “fraud.” The bank also plans to report Anil Ambani’s name to the RBI, in line with current regulatory norms.
On 3rd July, Reliance Infrastructure Limited and Reliance Power Limited issued official responses through stock exchange filings, clearly distancing themselves from the action taken by SBI against RCom.
In their clarification, both companies emphasised that SBI’s action against RCom has absolutely no connection or impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power and Reliance Infra.
They further underlined that Reliance Power and Reliance Infra are separate and independent listed entities, with no business or financial linkage to Reliance Communications.
It was further clarified that Mr. Anil D. Ambani is not on the board of either Reliance Power or Reliance Infra. Therefore, any regulatory or legal action involving RCom has no bearing on the governance, management, or operations of the two companies. Both firms reaffirmed their focus on executing their business strategies and delivering long-term value to stakeholders.
Despite the clarifications, investor sentiment took a hit. On Thursday’s trading session, shares of Reliance Infrastructure hit a 5 percent lower circuit, closing at Rs. 377.45 on the BSE. Reliance Power also saw a sharp decline of about 4.8 percent, touching an intraday low of Rs. 64.75.
Written by Shivani Singh
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