The State Bank of India (SBI), a key lender to Religare Finvest Limited (RFL), has removed RFL's record, previously labelled as a fraud, from the Central Fraud Registry database. This decision comes in response to a court order dated December 18, 2023, issued by the Delhi High Court instructing SBI to eliminate the fraud designation.
SBI officially communicated this decision to RFL on Friday. In March 2023, RFL, a wholly-owned subsidiary of Religare Enterprises Limited (REL) completed a One-Time Settlement (OTS) with 16 lenders through organic collections. The company made payments exceeding ₹ 9000 crores to the country's banking system.
Currently, RFL is awaiting the lifting of the Corrective Action Plan (CAP) imposed by the Reserve Bank of India (RBI) in January 2018.
Dr Rashmi Saluja, Executive Chairperson of REL and CMD of RFL said, "The removal of the 'fraud' tag is a testament to the commitment and dedication of the Company’s Board, management, and employees in resurrecting RFL and the Group from the brink in the aftermath of fraud perpetrated by the erstwhile promoters. This marks a pivotal step in the revival of RFL."
Pankaj Sharma, Chief Executive Officer of RFL, also said that this will open doors for a strategic path towards achieving growth.
The Central Fraud Registry, established under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016, serves as a web-based and searchable database, documenting frauds reported by commercial banks and select financial institutions per the Master Directions on the classification and reporting of frauds.
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