'No impact on RPower biz operations due to Bank of Baroda's action against RCom'

Reliance Power on Friday said that action taken by Bank of Baroda against Reliance Communications has no impact on its business operations and financial performance.

After State Bank of India and Bank of India, another lender, Bank of Baroda, has classified the loan account of insolvent Reliance Communications as fraudulent and named its former director, tycoon Anil Ambani, citing alleged misutilisation of loans granted more than a decade back.

In an exchange filing, Reliance Power said it is a separate and independent listed entity, with no business or financial linkage to Reliance Communications. ''The recent action by Bank of Baroda to classify the loan account of Reliance Communications and Anil D Ambani as fraud has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of Reliance Power,'' it said.

Reliance Power said the disclosures and records available in the public domain indicate that the aforesaid classification by Bank of Baroda for Reliance Communications and Anil Ambani pertains to matters 10 years ago.

Anil D Ambani has not been on the board of Reliance Power for more than 3.5 years. At present, Reliance Communications is being managed under the supervision of a Committee of Creditors, led by SBI and overseen by a resolution professional.

The matter remains sub judice, pending before the NCLT and other judicial forums, including the Supreme Court, for the past six years.

RCom said it has received a letter from BoB dated September 2 conveying its decision to classify the loan account of the company and promoter Anil Ambani as ''fraud''.

Bank of Baroda had sanctioned Rs 1,600 crore and another Rs 862.50 crore in line of credit to the company. Of the total Rs 2,462.50 crore, Rs 1,656.07 crore remains outstanding as on August 28, according to the lenders' letter disclosed by RCom in the regulatory filing.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)