Reliance Power: sees no impact from Bank of Baroda’s action

Reliance Power: sees no impact from Bank of Baroda’s action

Bank of Baroda's recent classification of Reliance Communications Ltd. and its former director, Anil Ambani, as "fraud" has sparked a wave of financial repercussions, with Reliance Communications' shares dropping significantly [2]. However, Reliance Power, a separate entity within the Reliance Group, has stated that it sees no impact from this development.

The classification by Bank of Baroda pertains to loan accounts that date back to the period before Reliance Communications initiated its Corporate Insolvency Resolution Process (CIRP) [1]. The company has stated that it will seek legal counsel to determine its next steps in response to this decision [1]. Reliance Communications is currently undergoing CIRP under the Insolvency and Bankruptcy Code, 2016, with a resolution plan awaiting approval from the National Company Law Tribunal (NCLT) [1].

Reliance Power, on the other hand, has maintained that its operations and financial health are not affected by the Bank of Baroda's decision. The company has emphasized that it operates independently from Reliance Communications and has its own financial structure and management. Reliance Power has not been involved in the loan accounts or the CIRP process of Reliance Communications [2].

The classification of the loan accounts as fraud by Bank of Baroda follows similar decisions by other banks, including the State Bank of India and Bank of India, which also declared RCom's loan accounts as fraudulent [1]. However, the impact of these decisions has been limited to the financial health of Reliance Communications and its former promoter, Anil Ambani, rather than affecting other entities within the Reliance Group.

In conclusion, while the Bank of Baroda's decision has significant implications for Reliance Communications and its former director, Anil Ambani, it does not appear to have any direct impact on Reliance Power. The company has maintained its operations and financial health, and it continues to operate independently from Reliance Communications.

References:
[1] https://m.economictimes.com/news/company/corporate-trends/anil-ambani-and-reliance-communications-loan-accounts-declared-fraud-by-bank-of-baroda/articleshow/123709196.cms
[2] https://m.economictimes.com/markets/stocks/news/reliance-communications-shares-in-focus-after-bank-of-baroda-classifies-anil-ambani-rcom-loan-accounts-as-fraud/articleshow/123709743.cms