Reliance Communications Discloses Fraud Classification By Canara Bank For Company & Subsidiary Accounts

Mumbai: Troubled telecom operator Reliance Communications has disclosed a fresh development in its long-running insolvency proceedings after receiving formal communication from Canara Bank regarding the classification of certain loan accounts as fraudulent.

Reliance Communications Limited (RCOM) said it received a letter dated February 27, 2026 from Canara Bank, which was received by the company on March 6, 2026. The bank informed the company that its borrower accounts have been classified as “fraud.” A similar letter was also issued to Reliance Telecom Limited (RTL), a subsidiary of the company. The bank further stated that the classification has been ordered by the competent authority and that the case will be reported to the Reserve Bank of India so it can be reflected in the Central Fraud Registry.

According to the bank’s communication, Reliance Communications had availed credit facilities totaling Rs 1790 crore from Canara Bank through various sanctioned limits and guarantees. The account was classified as a non-performing asset on September 29, 2017. A forensic audit conducted by BDO India LLP for the review period between April 1, 2013 and March 31, 2017 reportedly identified several irregularities in the utilisation of loan funds, including payments to related parties and transactions routed through connected entities.

The company clarified that it is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Its resolution plan has already been approved by the committee of creditors and is awaiting final approval from the National Company Law Tribunal (NCLT), Mumbai Bench. Reliance Telecom Limited, the subsidiary mentioned in the disclosure, is also under a similar insolvency resolution process with its own resolution plan awaiting NCLT approval.

The company said the transactions referred to in the bank’s letter relate to periods before the insolvency proceedings began. The resolution professional has already reviewed certain transactions through an independent audit and filed avoidance applications before the NCLT, which remain under consideration. Reliance Communications added that it is currently examining the development and seeking legal advice on the appropriate course of action.

The disclosure was made to the stock exchanges in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, which requires listed companies to inform investors about material developments.

Disclaimer: This article is based solely on the corporate disclosure made by Reliance Communications Limited to stock exchanges regarding letters received from Canara Bank dated February 27, 2026. No external sources or additional reporting have been used, and the information reflects only what is stated in the referenced document.