July 11, 2019

SBI Commissioned Investigation Flags Suspicious Deals Worth Rs 5,500 Crore Among Anil Ambani Led Reliance Companies

[ By Bobby Anthony ]


Transactions worth Rs 5,500 crore on the books of Reliance Communications and two other Anil Ambani-led Reliance Group entities have been flagged by a State Bank of India (SBI) commissioned probe and may lead to a further investigation.

Investigations into fund flows at RCom, Reliance Telecom and Reliance Telecom Infrastructure have revealed related party transactions, evergreening of loans and probable preferential dealings with entities at which a few Reliance Group employees are alleged to have been directors.

The probe, which looked at transactions between May 2017 and March 2018, examined over 100,000 entries, for suspected fund diversion.

The investigation report has been tabled before the committee of creditors and questions based on the findings of the report have been raised with the management

At least a dozen transactions seem to hint towards banker facilitation in evergreening of loans by using multiple letter of credit transactions which could be looked at in further detail.

Incidentally, the Anil Ambani-led Reliance Group companies have a debt of over Rs 1 lakh crore with RCom accounting for Rs 49,193 crore, followed by Reliance Telecom at over Rs 24,306 crore.

RCom had entered the bankruptcy process in May, when the National Company Law Appellate Tribunal (NCLAT) vacated a stay on insolvency proceedings against it.

Related Post

latest News

  • Award passed by Arbitral Tribunal can be interfered with only where the finding is perverse and/or against public policy: SC

    A Supreme Court bench of Justices Arun Mishra and M.R. Shah reiterated that the award passed by the Arbitral Tribunal can be interfered with in the pr...

    Read More
  • Vijay Mallya’s Appeal Against His Extradition Order Listed For A Three-Day Hearing By UK High Court In February 2020

    Defaulter Vijay Mallya's appeal in the UK High Court against his extradition order has been listed for a three-day hearing from February 11, 2020, a U...

    Read More
  • Purchaser of goods for commercial purpose for earning his livelihood by means of self-employment is deemed to be a consumer: SC

    A Supreme Court bench of Justices Uday Umesh Lalit, Indira Banerjee and M.R. Shah ruled that if the commercial use of goods by the purchaser himself i...

    Read More