RCOM Subsidiary & Promoter Classified as Wilful Defaulters by Canara Bank
Reliance Telecom Limited (RTL), a subsidiary of RCOM, and RCOM's promoter (as erstwhile Chairman & Director) have been classified as 'Wilful Defaulters' by Canara Bank. This was communicated on September 7, 2026, based on a decision dated August 31, 2026. Both entities are in CIRP, awaiting NCLT approval for resolution plans.
The classification as 'Wilful Defaulters' by a bank, especially when involving the promoter, has severe implications for the company's reputation, future borrowing capacity, and ongoing insolvency proceedings, despite the protections offered by CIRP.
The classification of both the company's subsidiary and its promoter as 'Wilful Defaulters' is a significant negative development, indicating serious financial impropriety and default.
Reliance Communications Limited (RCOM) has disclosed that its subsidiary, Reliance Telecom Limited (RTL), has been classified as a 'Wilful Defaulter' by Canara Bank. This classification was made by the Bank's Review Committee for Wilful Defaulters via a decision dated August 31, 2026, as communicated to RTL on September 7, 2026.
Furthermore, the announcement states that the promoter of RCOM, in his capacity as an erstwhile Chairman and Director of RCOM, has also been classified as a 'Wilful Defaulter' under the applicable Reserve Bank of India (RBI) guidelines. This information was also conveyed by Canara Bank through a letter dated September 4, 2026, received by RTL.
Both RCOM and RTL are currently undergoing corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016. Resolution plans for both entities have been approved by their respective committees of creditors and are awaiting approval from the National Company Law Tribunal (NCLT), Mumbai Bench. The loan accounts in question pertain to the period prior to the CIRP of RTL, and are required to be resolved as part of the resolution plan or liquidation. The resolution professional for RTL has filed avoidance applications with the NCLT concerning certain transactions identified in the letter. RCOM and RTL are protected from legal proceedings during CIRP, and Section 32A of the Code provides immunity from liabilities for offenses committed prior to CIRP upon NCLT approval of a resolution plan.
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Reliance Communications Limited filed this with the NSE as a statutory disclosure, categorised under fraud/defaults disclosure. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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