Anil Ambani is firefighting another charge that says RCom diverted funds into other group companies

• RCom says that a report which spoke of funds diversions during 2017 and 2018 are illogical, baseless, refuted and denied.
• At the time, RCom’s debt was restructured, and transactions worth ₹5,500 crore came under the lens.
• The lenders SBI is known to initiate a deeper probe to understand these dealings.

The promoters of Reliance Communications (RCom) have refuted a fresh set of allegations that funds have been diverted by them between 2017 and 2018, as per an ET report citing sources.

At the time, the-now bankrupt RCom’s debt was being restructured, and transactions worth ₹5,500 crore came under the lens of an investigation by State Bank of India (SBI).

Some of these funds were allegedly flown via related party transactions, and preferential dealings with companies where its Group-level directors were a part of. The loans were also evergreened, which means they are rolled over for a longer period of time, according to the report that is now being dismissed by the company.


‘Lenders knew’

“During the period of June 2017 to March 2018, RCom was under the strategic debt restructuring scheme of Reserve Bank of India (RBI), and all transactions were under the full scrutiny of lenders,” RCom said in a statement released today.

They said on Wednesday that the allegations of preferential treatment and fund diversion are “illogical, baseless, and are strongly refutes and denied”.

The ET report also said that there were three large entries as a part of a 100,000 entries made between March 2017 and March 2018. The lenders SBI is known to initiate a deeper probe to understand these dealings. For this, they have engaged an accounting firm BDO back in 2017.

“The alleged report has not been discussed with management and its input is yet to be taken on record by BDO,” said RCom in the statement.

RCom has been in trouble for a long time now, as has finally reached National Company Law Tribunal (NCLT) in May for its bankruptcy proceedings. It has saddled on a debt of ₹46,000 crore over the years as its business dulled after new technologies came in, and they had shifted gears from CDMA to GSM technology, increasing capital expenditure immensely.

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