Public sector lender Bank of Baroda has classified the loan accounts of Reliance Communications (RCom) and its promoter and director, Anil Ambani, as ‘fraud’. Reacting to the development, Ambani has strongly denied all allegations.
In a statement issued on his behalf, a spokesperson said the bank’s action pertains to matters dating back more than 12 years, around 2013, as per disclosures and records in the public domain.
A spokesperson on behalf of Anil Ambani said:
“The action by Bank of Baroda to classify the loan account of Reliance Communications Limited (RCom) along with Mr. Anil D. Ambani, pertains to matter dating back more than 12 years (i.e. the period of 2013), as per disclosures and records available in the public domain.
It is pertinent to note that Mr. Anil D. Ambani served only as a Non-Executive Director on the Board of RCom from inception in 2006 until his resignation from the Board in 2019, over six years ago (for almost 14 years). He was never an Executive Director or a KMP of the company, and had no role whatsoever in the day-to-day operations or decision-making of the company.
It is a matter of record that RCom had a lender consortium comprising 14 banks. After an inordinate lapse of more than 10 years, select lenders have now chosen to initiate proceedings in a staggered and selective manner targeting Mr. Ambani.
At present, RCom is being managed under the supervision of a Committee of Creditors, led by SBI and overseen by a Resolution Professional. The Committee of Creditors led by SBI had unanimously approved the resolution plan of the successful resolution applicant in March 2020. The matter remains sub judice, pending before the NCLT and other judicial forums, including the Hon’ble Supreme Court, for the past six years and the lenders have not taken steps to complete the resolution process.
Mr. Anil D. Ambani categorically denies all allegations and charges and shall pursue remedies available to him in accordance with legal advice.”
