On July 5, the bench of the National Company Law Tribunal (NCLT) in Mumbai will hear a request from the State Bank of India to remove a “fraudulent” label it was seeking for Reliance Infratel Ltd (RITL) on July 5.
At the next court date, the court also asked the country’s largest lender to produce additional evidence and data.
In an about-face, the country’s largest lender on Wednesday asked the court to remove the fraud tag on RITL, following an internal audit by SBI that reportedly found questionable transactions worth $ 5. 500 crores. The alleged transactions were found in the accounts of three companies Anil Ambani – Reliance Communications and its subsidiaries Reliance Telecom and RITL.
The turnaround comes after Reliance Projects and Property Management Services, an affiliate of Reliance Jio Infocomm, led by Mukesh Ambani, asked the NCLT to request the audit report from RITL’s creditors committee.
The move also stems from a consensus decision by lenders that a fraud label would derail billionaire Reliance Projects’ plan to take control of RITL Ltd. Reliance Projects had emerged as the successful bidder in RITL’s corporate insolvency resolution process.
RITL had moved the High Court from Delhi on January 6, 2021 and obtained a stay against SBI, while the court also ordered that the status quo be maintained.
The matter had been brought to the attention of the NCLT today.