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JIO haul Reliance Communication back in NCLT entreating audit reports: NCLT

It was first Started when the separate petition was filed against Reliance Infratel Ltd., Reliance Telecom Ltd., and Reliance Communications Ltd. (RCom) filed by the same Petitioner, namely Ericsson India Pvt. Ltd. u/s. 9 of IBC for having defaulted in paying Ericsson to the services rendered by it in terms of Managed Services Agreement (MSA) dated 25.01.2013 entered between these group of companies/Corporate debtors (collectively addressed as “Reliance”), in view of the same, Ericsson filed these Company Petitions for the ascertained claim made against each of these corporate debtors, for they collectively failed to pay Rs. 9,78,72,06,974 – the dues admittedly outstanding as n 31.03.2017, henceforth Ericsson filed separate company petitions against each of these three Reliance Companies for initiation of Corporate Insolvency Resolution process against RITL for defaulted in paying Rs. 427,21,40,509, against RTL for defaulted in paying Rs. 114,54,46,238, against RCom for defaulted in paying Rs. 436,96,20,227 as on 31.03.2017. Knowing well the Corporate Debtors not being common in these petitions, the facts and reliefs in respect to each of the companies are dealt with separately, but the submissions in these three Company Petitions being common.

ON December 3rd, 2020 the in their final order NCLT approved the resolution plan of Reliance Infratel Ltd. with the 100% voting of the committee of creditors, Lenders are likely to get around Rs 4,400 crore (more than 60%) and Reliance Jio some assets of the debt-laden telecom infrastructure firm, it was included in the resolution plan approved by the lenders that RCom and it’s subsidiary Reliance Telecom Infrastructure Ltd. will fo to UV Asset Reconstruction Company Ltd. and the tower unit Reliance Infratel will go to Reliance Jio for a total consideration of Rs 20,000 – 23,000 crore to be paid over a period of seven years.

In the months of April-May 2021  State Bank of India (SBI), Union Bank of India, and Indian Overseas Bank characterized records of the bankrupt telco and its units – Reliance Telecom and Reliance Infratel – as false. The claims came a year after a forensic review uncovered sketchy exchanges worth Rs 5,500 crore in the three Anil Ambani-drove Reliance Group elements. The test that saw exchanges between May 2017 and March 2018 discovered three enormous sections covered under countless others that the SBI-drove loan specialists’ gathering suspects could hide store redirection.

On May 27th, 2021, Reliance Jio through its unit, Reliance Project and Property Management Services, sought the audit details from Reliance Infratel, demanding the forensic audit reports to know as to why the three Indian banks had classified the accounts as fraudulent, for assessing that how it will impact the resolution plan.

“As it appears that the forensic audit report was available with the banks on 15th of October 2020. So, on the day when NCLT approved the plan which was the 3rd of December 2020, this report was available with the banks. They did not disclose it”. – Council of JIO before NCLT

In response, Reliance proceeds to I&B court against  RCom entreating disclosures of the forensic audit reports.

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