NEW DELHI: The State Bank of India (SBI) has removed the ‘fraud’ tag from Religare Finvest Limited (RFL) from the Central Fraud Registry database, said Religare Enterprises Ltd (REL) in an exchange filing.
SBI took this call following an order, dated December 18, 2023, from the Delhi High Court. “The removal of the ‘fraud’ tag stands as 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 and their affiliates and putting it on the path of growth and development. This is pivotal step in the revival of RFL,” said Rashmi Saluja, executive Chairperson, REL & CMD of RFL.
The company informed that in March 2023 it achieved a key milestone when it completed a one-time settlement (OTS) with 16 lenders through organic collections. The company paid over Rs 9,000 crore to the country’s banking system. Currently, RFL is awaiting the lifting of the Corrective Action Plan (CAP) imposed on RFL by the Reserve Bank of India (RBI) in January 2018.
The Central Fraud Registry, established under the RBI (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016, is a web-based and searchable database on frauds reported by commercial banks and select financial institutions in terms of Master Directions on classification and reporting of frauds.
Meanwhile, the Enforcement Directorate (ED) on Thursday said it raided companies of Essel Group in Mumbai and recovered “incriminating” documents as part of its ongoing money laundering probe linked to alleged diversion of funds worth over Rs 2,000 crore from RFL.