Overview

• BoB’s September 4 order classifying Reliance Communications’ loan accounts as fraud is on hold after the Bombay High Court granted interim relief.
• The bench recorded that no coercive steps may be taken and directed BoB to file its affidavit in reply by September 23, with the next hearing on September 24.
• RCom argues the action is illegal because the BDO forensic report was commissioned by SBI as lead lender and BoB was not part of the lending consortium.
• BoB told the court it has informed the RBI under the central bank’s fraud classification directions and said it could share details with the CBI if asked.
• Counsel noted SBI had already tagged RCom’s accounts as fraudulent and approached the CBI, which has sought information from BoB.