Reliance Communications Limited has disclosed, pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, that Punjab National Bank (PNB) has classified the loan account of its subsidiary, Reliance Telecom Limited (RTL), as 'fraud'. The disclosure was made on May 09, 2026, following receipt of a letter from PNB dated April 28, 2026, which was received by RTL on May 08, 2026.

Fraud Classification by Punjab National Bank

PNB's Head Office Fraud Examination Committee issued the fraud classification order against RTL and certain of its erstwhile directors on grounds of misappropriation of funds and criminal breach of trust. The amount involved in the fraud classification is ₹ 201.51 crore. The classification was made in terms of RBI guidelines/Master Circular No. RBI/DOS/2024-25/118/DOS.CO.FMG.SEC.No.5/23.04.001/2024-25 dated 15.07.2024, read with the judgement dated 27.03.2023 of the Hon'ble Supreme Court of India in Civil Appeal No. 7300/2022.

The following table summarises the key details of the fraud classification:

Directors Classified and Exempted

Show Cause Notices (SCNs) dated 06.03.2026 were issued to RTL and its erstwhile directors. After reviewing responses and available records, the committee took the following decisions:

Smt. Grace Thomas is also a Non-Executive Non-Independent Director of Reliance Communications, and the fraud classification pertains to her capacity as an erstwhile director of RTL. The SCN addressed to Smt. Grace Thomas was returned undelivered with the remark "Addressee Left without Instructions," and no response was received from her.

Key Fraud Angles Identified

PNB's reasoned order identified several fraud angles based on a forensic audit, including:

• Fictitious Debtors: Collections received by RTL from Reliance Webstore Limited (RWSL) amounting to INR 1,110.50 crores were routed through a series of transactions involving RCOM, RWSL, and Reliance Communications Infrastructure (RCIL), allegedly inflating the balance sheet and turnover of the company.
• Fund Diversion: RTL transferred Rs. 221.93 crore to RCOM out of loans received by RTL, of which INR 110 crores were invested by RCOM in Mutual Funds.
• Connected Party Payments: RCOM and its subsidiaries including RTL received Rs. 31580 crores by way of advances from member banks, of which Rs. 13667.73 crores (44%) were utilised for repayment of loans and other obligations to banks/financial institutions, and Rs. 12692.31 crores (41%) were utilised to pay connected parties.
• Inter-company Transactions: Total payment by RTL to RCOM during the review period was INR 3,742.47 crores, while total receipts were INR 537.83 crores. RTL promoters did not infuse any equity during the review period.
• Unusual Journal Entries: High-value receivable and payable balances were transferred to corresponding parties, with large amounts transferred to parties with weak financial backgrounds or unclear business nature.
• Preference Share Transactions: As on 1st April 2013, Rs. 1347.70 crores were receivable from RTL in the books of Reliance Infratel Ltd (RITL). RTL issued preference shares worth Rs. 1347.70 crores to RITL, which were subsequently sold to Reliance Communications Tamilnadu Ltd (RCTNL) for Rs. 260.00 crores, resulting in a loss of Rs. 1087.70 crores.
• Invoice Financing/Discounting: The forensic auditor noted that invoice financing/discounting was used for round-tripping of loans to and/or from related parties.

Impact on Reliance Communications and RTL Under CIRP

Both Reliance Communications and RTL are currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (the Code). The resolution plans for both entities have been approved by their respective committees of creditors and are presently awaiting approval of the Hon'ble National Company Law Tribunal (NCLT), Mumbai Bench.

The company has noted several legal protections available under the Code:

• Section 14(1)(a): During CIRP, both entities are protected from institution or continuation of suits or proceedings, including execution of any judgement, decree, or order.
• Section 32A: Upon NCLT approval of the resolution plan, both RCOM and RTL shall be deemed to have immunity against any liability for purported offences committed prior to the commencement of CIRP, subject to the prescribed conditions regarding change in management or control.
• Section 238: The provisions of the Code override anything inconsistent contained in any other law.

The loan account referred to in PNB's letter pertains to the period prior to the CIRP of RTL and is required, in terms of the Code, to be resolved as part of a resolution plan or in liquidation. The resolution professional of RTL has already filed avoidance applications with the NCLT in respect of certain transactions identified in PNB's letter, which are presently sub-judice. Legal advice is being sought on the way forward with respect to this development.

PNB has indicated it will take further course of action to report the fraud classification to the Reserve Bank of India as per the directions contained in the RBI Master Directions/circulars issued from time to time.

Reliance Communications Limited disclosed on May 08, 2026, that officials of the Central Bureau of Investigation (CBI) conducted a seizure operation at the company's office premises situated at B-Block, Ground Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai-400710 on May 07, 2026. The disclosure was made pursuant to Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company stated that it continues to operate its business in the normal course following the operation.

Details of the Seizure Operation

The seizure operation was carried out by CBI officials under applicable provisions of the Bhartiya Nagarik Suraksha Sanhita, 2023, with the case number recorded as RC0742025E0005-CBI/BSFB/Delhi dated 07.05.2026. The following key details of the operation have been disclosed by the company:

Documents Seized

During the seizure operation, CBI officials seized, inter alia, the following original documents maintained by the company:

• Original minutes of the proceedings of the meetings of the Risk Management Committee of the Board of Directors for the period from April 01, 2014 to March 31, 2017
• Original minutes of the proceedings of the Audit Committee Meetings of the Board of Directors for the period from April 01, 2012 to March 31, 2017

Impact on Operations and Financials

Reliance Communications has stated that the seizure operation conducted by CBI officials is not expected to have any impact on the financials or operations of the company. The company is currently undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (IBC), and is subject to the protections available under the provisions of the IBC. With effect from June 28, 2019, the affairs, business, and assets of the company are being managed by the Resolution Professional, Mr. Anish Niranjan Nanavaty, appointed by the Hon'ble National Company Law Tribunal, Mumbai Bench, vide order dated June 21, 2019.

Regulatory Disclosure

The disclosure was made by Company Secretary Rakesh Gupta on May 08, 2026, in accordance with Regulation 30 of the Listing Regulations read with SEBI Circular HO/49/14/14(7)2025-CFD-POD2/I/3762/2026 issued on July 11, 2023 (last updated on January 30, 2026). The requisite details were set out in Annexure A filed alongside the disclosure letter addressed to BSE Limited and the National Stock Exchange of India Ltd.