Daijiworld Media Network - Mumbai

Mumbai, Nov 4: The State Bank of India (SBI) has decided to forward the names of Reliance Communications (RCom), its directors and guarantors for classification as wilful defaulters, the company said in a regulatory filing on Wednesday.

RCom, which is undergoing insolvency proceedings under the Corporate Insolvency Resolution Process (CIRP), said it had received an SBI letter dated October 31 on November 3, confirming that the bank had rejected its representations against the proposed classification. The company said its name would now be shared with credit information companies for listing as a wilful defaulter.

RCom said the classification was not expected to have any impact on the company. However, its resolution professional was examining the bank's communication and seeking legal advice on the next course of action.

SBI's move follows the classification of credit facilities extended to RCom as non-performing assets in August 2016. The bank's Wilful Default Identification Committee initially proposed the wilful defaulter classification in March 2026, citing alleged violations in the utilisation of funds and the routing of transactions through subsidiaries.

The Review Committee for Wilful Defaulters subsequently examined the matter and confirmed the decision. According to the bank's communication, neither the company nor its promoter-director availed of the opportunity for a personal hearing offered on September 16, 2026. The letter names RCom and its chairman, Anil Ambani.

RCom maintained that the credit facilities referred to in SBI's communication related to the period before the commencement of the CIRP and would have to be addressed through the resolution plan or liquidation process.

The company also referred to protections under Sections 14(1)(a), 32A and 31 of the Insolvency and Bankruptcy Code (IBC), arguing that it was protected from certain legal proceedings during the insolvency process.

It said Section 32A provides immunity to the corporate debtor from liability for offences committed before the commencement of CIRP once a resolution plan is approved by the National Company Law Tribunal (NCLT), subject to the conditions prescribed under the law.

RCom further cited Section 238 of the IBC, which provides that the Code overrides provisions of other laws to the extent of any inconsistency.

The company reiterated that the proposed classification was not expected to affect it, while stating that it was examining the matter and obtaining appropriate legal advice.