October 5, 2025: Reliance Communications Limited (RCOM) has informed that it received a letter from UCO Bank, stating that the bank has classified the company’s loan account as “fraud.”
🧾 Key Details
- Bank involved: UCO Bank
- Action taken: Loan accounts of RCOM classified as fraud.
- Date of communication: September 26, 2025
- Date received by RCOM: October 3, 2025
⚖️ Company’s Statement
Reliance Communications clarified that it is under Corporate Insolvency Resolution Process (CIRP) as per the Insolvency and Bankruptcy Code, 2016.
A resolution plan for the company has already been approved by the Committee of Creditors (CoC) and is currently awaiting approval from the National Company Law Tribunal (NCLT), Mumbai Bench.
The company also stated that the loans referred to by UCO Bank relate to a period before the insolvency process began, and will be addressed under the resolution plan once it is approved by the NCLT.
🛡️ Legal Protection Claimed
RCOM mentioned that, under Section 14 and Section 32A of the Insolvency and Bankruptcy Code:
- The company is protected from ongoing or new legal proceedings during the CIRP.
- It will also be protected from liability for any past offences once the resolution plan is approved, provided there is a change in management or control.
RCOM further confirmed that legal advice is being sought on the next steps following this development.
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