RCom lenders contend to have first right over IT refunds

Lenders of Reliance CommunicationsNSE -1.96 % (RCom) Tuesday contended before the NCLAT that they have the first right over Rs 260 crore, which the debt-ridden company has received as the income tax refund. The SBI along with other members of Joint Lenders’ Forum (JLF) said that under the RBI guidelines, they have the right over the retention and trust account in which the refunds have been deposited.

A two-member bench headed by Chairman Justice S J Mukhopadhaya will continue the hearing tomorrow in the matter.

Senior advocate Neeraj Kishan Kaul, representing the SBI, submitted before the tribunal that JLF could not be blamed for not recovering Rs 37,000 crore from sales of assets of RCom.