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In separate exchange filings, Reliance Power and Reliance Infrastructure have clarified that the recent CBI action against Reliance Communications (RCom) and its former director, Anil Ambani, does not affect their business. Both companies stated that they are distinct and independent entities with no business or financial links to RCom. The clarification comes after the CBI registered a INR 2,929 crore bank fraud case and conducted searches at RCom's premises and Ambani's residence. The companies also noted that Ambani has not served on the board of Reliance Power for over 3.5 years, further reinforcing their separation from the ongoing legal issues of RCom.
The clarification issued by Reliance Power and Reliance Infrastructure follows a significant development, where the Central Bureau of Investigation (CBI) registered a bank fraud case and conducted searches at the premises of Reliance Communications (RCom) and the residence of its former chairman, Anil Ambani. The CBI's action stemmed from a complaint by State Bank of India (SBI), alleging a fraud of nearly INR 2,929 crore involving the diversion of loan funds. Advertisement
Both Reliance Power and Reliance Infrastructure quickly moved to reassure investors and stakeholders that they are not involved in the matter. In their official filings, they highlighted their independent legal status, emphasizing a clear separation in their business, financial, and governance structures from RCom. This is further reinforced by the fact that Anil Ambani stepped down from the board of Reliance Power more than 3.5 years ago.
The move by Reliance Power and Reliance Infrastructure is a crucial step to distance themselves from the legal troubles facing the former telecom giant and to maintain investor confidence. Both companies have seen positive momentum in their stock prices recently, driven by new ventures in the renewable energy sector, including a solar power project with battery storage awarded to Reliance Infrastructure and a new joint venture in Bhutan for Reliance Power. The clarification seeks to prevent the CBI's action from negatively impacting their operational progress and valuation.
Meanwhile, Reliance Communications remains a matter under the jurisdiction of a committee of creditors led by SBI, as its insolvency resolution process is pending before the National Company Law Tribunal (NCLT) and other legal forums for the past six years.
Source- PTI
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