Reliance Communications Limited (RCom) and its wholly-owned subsidiary, Reliance Communication Infrastructure Limited (RCIL), are facing a comprehensive investigation by the Serious Fraud Investigation Office (SFIO), as ordered by the Ministry of Corporate Affairs (MCA). This development marks a significant turn of events for the telecommunications company, which is already undergoing corporate insolvency resolution process.

Investigation Details

The SFIO investigation, ordered under Section 212(1)(c) of the Companies Act, 2013, covers an extensive period from the financial year 2008-09 to 2023-24. The companies have been directed to provide a wide range of information and documents by November 28, 2025, including:

• Detailed financial statements
• Bank account information
• Loan and investment details
• Internal audit reports
• Corporate governance records

Company's Response

In response to the investigation, RCom has stated that it will extend full cooperation to the authorities and comply with the requirements set out in the notice. The company's management has emphasized that since only information and details are being sought, they do not expect any impact on business operations, shareholders, employees, or other stakeholders.

Regulatory Disclosure

RCom, in compliance with regulatory requirements, has made the necessary disclosures to the stock exchanges. The company has filed the information under Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Current Status of RCom

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

Market Implications

While the full implications of this investigation are yet to be seen, it adds another layer of complexity to RCom's ongoing financial challenges. Stakeholders will be closely watching how this investigation unfolds and its potential impact on the resolution process.

The SFIO's extensive probe into RCom and RCIL underscores the regulatory scrutiny faced by major corporations in India's telecommunications sector. As the investigation progresses, it may provide insights into the financial practices of the company over the past decade and a half.

Reliance Communications (RCom) faces a new challenge as IDBI Bank has classified its loan account as fraudulent. This development adds complexity to RCom's ongoing corporate insolvency resolution process.

Key Points of the Development

• Fraud Classification: IDBI Bank has labeled Reliance Communications' loan account as fraudulent.
• Ongoing Insolvency: The company is currently undergoing a corporate insolvency resolution process.
• Regulatory Reporting: IDBI Bank has reported this matter to the Reserve Bank of India (RBI).
• Legal Action: The bank has also notified law enforcement agencies about the fraudulent account.

Implications and Next Steps

The classification of RCom's loan account as fraudulent by IDBI Bank is a serious matter that could have significant consequences for both the company and its stakeholders. This action suggests potential irregularities in the loan account, which may complicate the ongoing insolvency proceedings.

The involvement of the RBI and law enforcement agencies indicates that this issue may be subject to further investigation and potential legal action. Stakeholders, including investors and creditors, should closely monitor the situation as it unfolds.

This new development may impact the ongoing corporate insolvency resolution process and potentially affect the resolution plans for Reliance Communications. The outcome of any investigations resulting from this fraud classification could have significant implications for the company's future and its ability to resolve its financial difficulties.

As the situation is still developing, more details may emerge in the coming days that could provide further clarity on the extent and nature of the alleged fraud, as well as its potential impact on the insolvency process.