Reliance Infrastructure and Power Unfazed by Reliance Communications Fraud Allegations

Reliance Infrastructure and Reliance Power reassured stakeholders on Thursday that the classification of Reliance Communications' loan account as fraud by the State Bank of India (SBI) will not affect their business operations or financial performance. The companies emphasized their independence and lack of financial ties with Reliance Communications.

The announcements came amid SBI's decision to label the loan account of the troubled telecom entity as fraudulent. Reliance Communications' erstwhile director, Anil Ambani, was also named in the report sent to the Reserve Bank of India (RBI).

Reliance Communications and its subsidiaries had secured loans amounting to Rs 31,580 crore, with the bank's Fraud Identification Committee finding discrepancies in loan utilization. Despite the developments, Reliance Infrastructure and Reliance Power maintain their governance and management remain unaffected.

(With inputs from agencies.)