Anil Dhirubhai Ambani group (ADAG) stocks — Reliance Infrastructure and Reliance Power share price surged as much as 2 per cent in Friday’s trading session after the company issued a clarification that the State Bank of India’s (SBI) classification of Reliance Communications‘ loan account as fraudulent is unlikely to affect them.
Reliance Power share price rose over 3.70 per cent to ₹66.90 apiece on NSE, meanwhile, Reliance Infrastructure share price ascended over 4.65 per cent to ₹385.10 apiece on July 4.
Reliance – SBI row
This clarification followed SBI’s move to label the loan account of the bankrupt Reliance Communications as fraudulent, citing fund diversion allegations dating back to 2016.
As per Indian banking regulations, once a loan is declared fraudulent, it must be reported to investigative agencies for potential criminal proceedings, and the concerned borrower is prohibited from obtaining further funding from banks and financial institutions for a minimum of five years.
Reliance Communications revealed that its total debt amounted to ₹40,400 crore ($4.71 billion) as of March, as per a Reuters report. In a letter, SBI stated its intention to report Anil Ambani, a director at Reliance Communications, to the Reserve Bank of India in line with Indian banking regulations.
A spokesperson for Reliance Communications said that Ambani is addressing the issue based on legal advice.
In response, both companies asserted that SBI’s move would have “absolutely no impact” on their business operations, financial performance, shareholders, employees, or any other stakeholders.
Both companies emphasized that they operate as distinct and independently listed entities, with no business or financial association with Reliance Communications. They also clarified that Anil Ambani holds no board position in either Reliance Infrastructure or Reliance Power.
As a result, any measures taken concerning Reliance Communications do not affect the governance, management, or operations of Reliance Infrastructure or Reliance Power.
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