NCLT to hear SBI’s plea to withdraw Reliance Infratel’s fraud tag on July 5
June 10, 2021
The tribunal had sought SBI to produce further evidence and data. The National Company Law Tribunal’s (NCLT) Mumbai bench will hear State Bank of India’s request to withdraw a “fraudulent” tag it sought for Reliance Infratel Ltd (RITL) on July 5.
On the next hearing date, the tribunal has also asked the country’s largest lender to produce further evidence and data.
In a volte-face, the country’s largest lender on Wednesday moved the tribunal seeking to withdraw the fraud tag on RITL, following an internal forensic audit by SBI that allegedly found questionable transactions worth ₹5,500 crore. The alleged transactions were found in the accounts of three Anil Ambani three firms - Reliance Communications and its subsidiaries Reliance Telecom and RITL.
This contrasts with their position with respect to a bid by C Sivasankaran for his company Siva Industries and Holding. The lenders accepted Sivasankarans bid in April despite his companies being under the scanner of the Central Bureau of Investigation.
Haircut bluesAccepting for a meagre amount of ₹2,900 crore by the committee of creditors in the case if Videocon company is most unfortunate. The committee of creditors has to forego ₹42,000 crore as
For banks, however, the resolution is not the end of the road because NCLT orders are still being challenged by other creditors and debtors as the bankruptcy code is put to the test in higher courts.
NBCC had submitted the fresh resolution plan on Friday evening, while rival bidder Suraksha Group had sought an additional seven days to submit a revised bid.