An investigation ordered by the State Bank of India has flagged transactions worth Rs 5,500 crore in the books of Reliance Communications and two other group companies, The Economic Times reported on Wednesday, citing people with direct knowledge of the matter, adding that this has led to further probe.
The investigation into fund flows at RCom, Reliance Telecom and Reliance Telecom Infrastructure scrutinised apparent evergreening of loans, related-party transactions, and what looked like preferential dealings with entities at which employees of the group were directors, the report said.
The probe, the report said, has looked into transactions that were made between May 2017 and March 2018, examining more than one lakh entries made during the period. The fund flows came under intense scrutiny as the SBI-led banks' group suspects fund diversion, the report added.
A deeper probe will be initiated to check the authenticity of the dealings of the three entities, one of the persons mentioned above told the paper, as mentioned in the report.
“The probe came across several transactions which had no logic whatsoever. A deeper analysis showed that these were just adjustment entries made by the company. An in-depth investigation is needed to track the flow of these funds,” a source was quoted as saying in the report.
However, denying all allegations, an RCom spokesperson said that the news is "illogical and baseless".
“During the period of June 2017 to March 2018, RCom was under the Strategic Debt Restructuring scheme of RBI, and all transactions were under the full scrutiny of lenders," the spokesperson said.
First Published: Jul 10, 2019 9:37 AM IST
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Lok Sabha Elections 2024 | Assault allegations or political accusations— what's Swati Maliwal controversy all about
May 19, 2024 2:25 PM
Phase five Lok Sabha polls: Rae Bareli, Amethi among 14 UP seats going to polls on Monday
May 19, 2024 1:03 PM
AAP protest walk: Arvind Kejriwal challenges BJP to arrest entire party, Delhi Police imposes Section 144
May 19, 2024 12:26 PM
Terror attacks in Kashmir raise concerns ahead of May 20 and May 25 election
May 19, 2024 12:15 PM