Union Bank’s action to identify loan accounts as ‘fraudulent’ not legally tenable: Reliance Communication

Reliance Communications has said that any action taken by the Union Bank of India for initiation of any proceedings to identify the bankrupt telco’s loan accounts as fraudulent is not legally tenable since the company is undergoing the corporate insolvency resolution.

In a filing to the Bombay Stock Exchange on Thursday, Rcom also pointed out that the query regarding irregularities in the bank accounts as mentioned by the Union Bank of India relate to transactions between April 1, 2013 and March 31, 2017, which is prior to the date of initiation of insolvency proceedings, and hence the resolution professional is not obligated to respond to the same.