NCLAT pulls up SBI-led lenders of RCom for giving a ‘false impression’

For the second day in a row, the National Company Law Appellate Tribunal (NCLAT) pulled up State Bank of India (SBI), among other lenders of Anil Ambani-led Reliance Communications (RCom), for giving ‘false impression’ that Rs 37,000 crore would be recovered by selling the assets of the telecom company to Reliance Jio Infocomm (Jio). The appellate tribunal will continue hearing the case on Wednesday.

The NCLAT had on Monday sought the banks’ reply as to why action should not be initiated against them for giving a “golden outlook” about how the money would be recovered by sale of assets and the creditors would be paid off.

It is hearing a plea moved by RCom against the banks. RCom had approached the NCLAT after nearly 40 banks had refused to let the company withdraw money from the retention-and-trust account in which its tax refunds had come.