NCLAT Questions Lenders Including SBI for False Representation of Claims as Lenders of the Debt-Ridden RCom

NCLAT Questions Lenders Including SBI for False Representation of Claims as Lenders of the Debt-Ridden RCom

New Delhi: On Monday, March 11, the National Company Law Appellate Tribunal (NCLAT) raising objection, questioned the State Bank of India along with others, as lender of the debt-ridden RCom for furnishing fabricated and false claims to monetize Rs. 37,000 crores from asset sales of Reliance Jio.

The matter was heard before a two-member NCLAT bench headed by Justice S J Mukhopadhaya, who being displeased with such behavior of the lenders, especially SBI, warned them of initiating strict action against them.

"You have failed. JLF (Joint Lenders' Forum) has failed. No sale took place. Why should a proceeding not be initiated towards the same," observed the bench.

As per information available with the Tribunal, the lenders had submitted a “golden outlook” to NCLAT to recover around Rs. 37,000 crores from sale of assets, however, nothing was put in process.

"You clapped with RCom and cited loss of a crore per day, on account on which you further claimed to recover the loss from sale of assets to Reliance Jio," said NCLAT.

Recently, an application was filed by Anil Ambani led Reliance Communications, requesting its creditors to release Income Tax refund amounting Rs. 260 directly to telecom equipment maker Ericsson. However, the plea was largely opposed by the financial creditors. The debt-ridden RCom is due to pay its creditors a sum of about Rs. 550 crores.

During the hearing, the bench asked the lenders as to why the order of the Apex Court directing release of Income Tax fund not be implemented.

Seeking a brief two-page response from all the lenders, the bench listed the matter for further hearing on Tuesday, March 12.

Previously, on February 20, the apex Court ordered Reliance Communications, its Chairman and two more directors in contempt and subsequently, instructed to pay Ericsson towards settlement of dues Rs. 453 crore within four weeks. It is pertinent to not that the payment to be made was in addition to the Rs. 118 crore which Reliance had undertaken to deposit with the Court Registry.

On February 4, the NCLAT ordered
“Until further orders, the Appellants, corporate debtor RCom, Respondent (Ericsson India),
guarantors or any third party will not sell, transfer or alienate any moveable or immoveable
property of RCom nor invoke any guarantee or mortgage or any other instrument without
prior permission.”

Anil Ambani
National Company Law Appellant Tribunal (NCLAT)
Reliance Communication

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