Reliance Communications Limited (RCom) has announced that it has received a request from Reliance Capital Limited to reclassify its shareholding in the company. The request involves moving Reliance Capital's shares from the 'Promoter / persons belonging to Promoter Group' category to the 'Public' category.

Reclassification Request Details

According to the intimation filed by RCom with the stock exchanges, the reclassification request has been made under Regulation 31A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company disclosed this information in compliance with Regulation 31A(8)(a) of the Listing Regulations.

Current Shareholding Status

Interestingly, the filing reveals that Reliance Capital Limited currently holds no equity shares in Reliance Communications. The shareholding details provided in the intimation are as follows:

Next Steps

The resolution professional of Reliance Communications, Mr. Anish Niranjan Nanavaty, is seeking necessary legal advice regarding the reclassification request. This step is crucial as RCom is currently under corporate insolvency resolution process pursuant to the provisions of the Insolvency and Bankruptcy Code, 2016.

Company Status

It's worth noting that since June 28, 2019, Reliance Communications' affairs, business, and assets are being managed by the Resolution Professional, Mr. Anish Niranjan Nanavaty. The powers of the board of directors are vested in the Resolution Professional, who was appointed by the Hon'ble National Company Law Tribunal, Mumbai Bench.

The reclassification, if approved, would alter the shareholding structure of Reliance Communications, potentially impacting the company's ownership dynamics. Shareholders and market observers will be keenly watching for further developments on this matter.

Reliance Communications (RCom) and its associates face serious allegations as Bank of India declares their loan accounts fraudulent. This declaration involves outstanding loans amounting to ₹725.00 crore, affecting RCom, its subsidiary Reliance Telecom, Anil Ambani, and some directors.

Alleged Misuse of Funds

Bank of India claims that RCom misused sanctioned funds by investing in mutual funds and fixed deposits instead of purchasing spectrum as intended. The loans, provided in 2015 and 2016, were meant for ongoing capital expenditure, operational costs, and repayment of existing liabilities.

Forensic Audit Findings

A forensic audit by BDO India uncovered suspected fraudulent activities within RCom. The accounts in question turned non-performing on June 30, 2017, raising concerns about the company's financial practices.

Wider Implications

This declaration follows a similar move by the State Bank of India, which had previously classified RCom's account as fraudulent. The situation has drawn attention from multiple financial institutions and regulatory bodies.

Denial of Allegations

A spokesperson for Anil Ambani has denied all allegations, claiming that Bank of India did not adhere to principles of natural justice and deprived Ambani of a personal hearing in the matter.

Ongoing Investigations

The Central Bureau of Investigation (CBI) has intensified its scrutiny of the Anil Dhirubhai Ambani Group. The CBI conducted a search operation at RCom's office premises in Navi Mumbai, as disclosed in a regulatory filing by the company.

The CBI's action is related to alleged offenses under Sections 120B, 406, and 420 of the Indian Penal Code, 1860, and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988.

Company's Current Status

Reliance Communications Limited is currently undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. Since June 28, 2019, the company's affairs, business, and assets are being managed by a Resolution Professional, Mr. Anish Niranjan Nanavaty, appointed by the National Company Law Tribunal, Mumbai Bench.

As investigations and legal proceedings continue, the financial sector and investors will closely watch the developments in this high-profile case involving one of India's prominent business groups.