State Bank of India removes ‘fraud’ tag from Religare Finvest

State Bank of India (SBI) has removed the record of Religare Finvest Limited (RFL), which it had earlier reported as a fraud, from the Central Fraud Registry database. According to a statement on Friday, the decision follows the Delhi High Court’s December 18, 2023 order, which had directed SBI to remove the fraud tag.

SBI informed RFL through formal communication today.

In March 2023, RFL, a wholly owned subsidiary of Religare Enterprises Limited (REL), completed a one-time settlement (OTS) with 16 lenders. “The company repaid over Rs 9,000 crore to the country’s banking system,” Religare Finvest Ltd said in a statement.

Currently, RFL is awaiting removal of the Corrective Action Plan (CAP) imposed on RFL by the Reserve Bank of India (RBI) in January 2018.

Rashmi Saluja, Executive Chairperson, REL and CMD, 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 reviving RFL and the group from the brink of crisis. Consequences of the fraud committed by the erstwhile promoters and their associates and bringing it on the path of growth and development. This is an important step in the revival of RFL.

Pankaj Sharma, Chief Executive Officer, RFL, said, “The announcement holds great significance for the company, as it will open the doors to our strategic path towards achieving growth. RFL is eagerly awaiting the much-awaited withdrawal of the RBI Corrective Action Plan (CAP) implemented in January 2018.

A web-based and searchable database on frauds reported by commercial banks and select financial institutions in terms of the Central Fraud Registry, established under the Reserve Bank of India (Fraud Classification and Reporting by Commercial Banks and Select Financial Institutions) Guidelines, 2016. Is. Guidelines on Fraud Classification and Reporting.