Shweta Tambade
The Delhi High Court has instructed the Union Bank of India and Indian Overseas Bank to maintain the status quo as fraudulent in a matter relating to the classification of accounts of Reliance Communication Ltd. (RCOM) and its wing, Reliance Telecom Ltd. (RTL).
RCOM and RTL challenged the Union Bank of India and Indian Overseas Bank to mark these accounts as fraudulent.
After hearing the petition, Delhi HC has instructed the banks to maintain the status quo and directed no coercive action to be taken till the next date of hearing.
As per reports, the State Bank of India (SBI), Union Bank of India (UBI), and Indian Overseas Bank (IOB) had marked the RCOM account as fraudulent.
Additionally, SBI and UBI have also remarked RTL account as fraudulent.
RTL is a 100% subsidiary of RCOM., whereas, RCOM subsidiary, Reliance Infratel Ltd.’s account, has also been marked as fraudulent by the SBI.
The banks made a move a couple of weeks after the NCLT Mumbai permitted the Reliance Infratel’s Resolution Plan, in the first week of December.
The next date of hearing is scheduled for 13 January 2021.