IFCI tags RCOM account as fraudulent

IFCI has classified Reliance Communications Ltd’s (RCOM) account as fraudulent.

According to the sources, IFCI had sanctioned corporate loan facility of Rs 300 crores to RCOM in November 2013.

This loan facility turned NPA after RCOM was admitted to the NCLT for debt resolution.

This loan account has now been tagged by the IFCI as fraudulent., the sources have revealed.

IFCI is not the first lender to have classified its exposure in RCOM as fraudulent.

Prior to this, State Bank of India, Union Bank, and Indian Overseas Bank have also classified RCOM and its subsidiary Reliance Telecom Ltd (RTL) accounts as fraudulent.

RCOM had challenged the fraudulent tag in the Delhi High Court calling it ‘unjustified’ and ‘unwarranted’ and the court had directed these banks to maintain the status quo and not take any coercive action against the company.