New Delhi:In a significant step, Bank of Baroda, one of India's leading public sector banks, has declared the loan accounts of Reliance Communications Ltd. (RCom) and its erstwhile Director, Anil Ambani, as 'fraud', according to an exchange filing.

This classification pertains to loans taken before RCom entered the corporate insolvency resolution process (CIRP).

This development marks a crucial turn in the ongoing financial saga surrounding the once-prominent telecom company and its erstwhile director.

RCom, currently undergoing the CIRP under the Insolvency and Bankruptcy Code (IBC), 2016, has said that the loans in question relate to the period before its insolvency proceedings began. The company asserts that these loans must be resolved as part of a resolution plan or through liquidation under the IBC.

RCom is presently under the control of a resolution professional, Anish Niranjan Nanavaty.Anil Ambani is no longer a director of the company.

In a statement, a spokesperson for Anil Ambani said he was not an Executive Director or a key managerial person of RCom, and had no role in the day-to-day operations or decision-making of the company, citing the matter pertains to 2013.

"It is pertinent to note that Mr. Anil D. Ambani served only as a Non-Executive Director on the Board of RCom from inception in 2006 until his resignation from the Board in  2019...

Source;Ndtv