Anil Ambani
Accounts of Anil Ambani-owned Reliance Telecom, Reliance Infratel, Reliance Communication declared fraud
Mumbai/IBNS: In a setback for Anil Ambani, the bank accounts for Reliance Communication, Reliance Telecom and Reliance Infratel, all owned by the financially-beleaguered businessman, have been declared "fraud" by the State Bank of India, the High Court was informed, said media reports.
The former Director of Reliance Communication, Punit Garg, had approached the High Court challenging the Reserve Bank's circular that classified the accounts as fraud stating that both the parties should be heard before the decision.
Reports said the High Court has asked the State Bank to maintain the status quo.
The bank told the court that the audit of the accounts have revealed diversion of funds and other irregularities.
According to RBI guidelines, an account can turn into a non-performing asset on non-payment of loan installments for a period of time.
Though the court has ordered to maintain status quo on the accounts, SBI can continue with its investigations and file complaints based on its findings when an account is declared fraud.
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