NCLT adjourns Rel Infratel matter to July 5

Mumbai/Delhi (IANS) The National Company Law Tribunal (NCLT) on Thursday adjourned the much-awaited Reliance Infratel Ltd ‘fraud tag’ matter to July 5, asking the State Bank of India (SBI) to gather and produce more pleadings, submissions and evidences on that day.

This comes after the SBI curiously chose to withdraw the fraud tag against RCom’s tower and fibre company Reliance Infratel Ltd.

Reliance Projects and Property Management Services, a part of Reliance Industries Group, was the successful resolution partner in the CIRP (Corporate Insolvency Resolution Process) of Reliance Infratel Ltd. It won the right to acquire 100 per cent shareholding of Reliance Infratel Ltd.

In its resolution order dated December 3, 2020, the NCLT had awarded the company to RIL Group. However, SBI classified the Reliance Infratel Ltd account as fraud on November 10, 2020, but curiously withheld this vital piece of information before the NCLT when it gave its order.

Further, the material event of information being withheld from the NCLT process was a grave error and the same SBI fraud classification wasn’t uploaded on the CRILIC website for 45 days till December21, 2020.

The SBI thus violated the disclosure norms by updating CRILIC much later. On January 5, 2021, SBI chose to file a complaint with CBI Delhi against Reliance Infratel Ltd’s erstwhile directors.

Reliance Infratel Ltd then moved the Delhi High Court on January 6, 2021 and got a stay against SBI actions, and the court ordered a status quo to be maintained on the CBI complaint.

Banking sources have revealed that a top SBI CGM, who has since been promoted to a top job in the financial sector, was responsible for this judgmental error.

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