Reliance Communications has reported a total debt of ₹404.10 billion as of December 31, according to recent financial disclosures. This substantial debt figure highlights the significant financial obligations carried by the telecommunications company.

Financial Position Overview

The debt disclosure provides insight into the company's financial structure as it navigates the competitive Indian telecommunications market. The following table summarizes the key financial metric:

Company Background

Reliance Communications operates in India's telecommunications services sector and is classified as a small-cap company with a market capitalization of ₹348.46 crores. The company trades on both NSE and BSE exchanges, serving customers in the highly competitive Indian telecom market.

Debt Implications

The reported debt level of ₹404.10 billion represents a significant financial commitment for the telecommunications company. This figure reflects the capital-intensive nature of the telecommunications industry, where companies require substantial investments in infrastructure, spectrum, and technology to maintain competitive operations.

The debt position as of December 31 provides stakeholders with a clear view of the company's financial obligations and will be closely monitored by investors and analysts tracking the company's financial health and operational performance in the telecommunications sector.

Reliance Communications has disclosed that Central Bank of India declared the loan accounts of its subsidiary Reliance Telecom Limited (RTL) as fraud, involving ₹18.40 crores. The disclosure was made following receipt of a letter from the bank dated December 17, 2025.

Fraud Declaration Details

The Central Bank of India's Empowered Committee made the fraud declaration based on a forensic audit report submitted by BDO India LLP on October 15, 2020. The bank had extended various credit facilities totaling ₹400.00 crores to the Reliance group entities.

Key Fraud Findings

The forensic audit identified several irregularities that led to the fraud classification:

Fund Diversion

RTL utilized a ₹220.00 crore term loan to repay Inter-Corporate Deposits (ICDs) taken from Reliance Communications Limited, which was not permitted under the sanction terms. The loan was meant for capital expenditure, operational expenditure, and repayment of existing liabilities excluding related party loans.

Complex Transaction Structure

The audit revealed unusual journal entries and transfers of high-value receivables and payables to parties with weak financial backgrounds. During the forensic audit period (April 1, 2013 to March 31, 2017), RTL paid ₹3,742.47 crores to RCOM while receiving only ₹537.83 crores.

Round-Tripping Transactions

Collections worth ₹1,110.50 crores were received by RTL from RCOM through Reliance Webstore Limited via a series of circular transactions using HDFC's intraday limit facility of ₹100.00 crores.

Timeline and Regulatory Actions

Corporate Insolvency Protection

Both Reliance Communications Limited and RTL are currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Resolution plans for both companies have been approved by their respective committees of creditors and are awaiting approval from the National Company Law Tribunal (NCLT).

The company highlighted that Section 32A of the Code provides protection against liability for offences committed prior to CIRP commencement, once resolution plans are approved by NCLT. Additionally, Section 14(1)(a) of the Code protects both entities from institution or continuation of suits and proceedings during the CIRP period.

Current Status

The credit facilities referenced in the fraud declaration pertain to the period before RTL's CIRP initiation. These liabilities are required to be resolved as part of RTL's resolution plan or through liquidation proceedings. The resolution professional has filed avoidance applications with NCLT, which are currently sub-judice, and their treatment will be determined according to NCLT decisions and applicable resolution plan provisions.

The Central Bank of India cited fund diversion and non-compliance with sanction terms as reasons for declaring the loan accounts as fraud. This declaration affects loan accounts worth ₹18.40 crores, emphasizing the severity of the financial irregularities identified in the forensic audit.