Chinese banks have written to Finance Minister Nirmala Sitharaman on the delay in implementation of the resolution plan for Reliance Infratel Ltd.
China Development Bank, Export Import Bank of China, Shubh Holdings Pvt Ltd and SC Lowy Asset Management have written to the Finance Minister and Chairman of IBBI regarding their respective capacities as financial creditors of Reliance Infratel Limited (RITL).
Collectively, these banks have a total financial credit of Rs 13,483 crore out of RITL’s total financial credit of Rs 41,055 crore.
In a letter to the finance ministry and IBBI, the lenders have conveyed their concerns for Reliance Infratel despite the strict timelines stipulated in the IBC, 2016.
All the lenders are facing loss due to this bad loan, the letter said.
Banks have also asked the Ministry of Corporate Affairs to impose penalty on those bidders who have delayed the entire process.
Reliance Infratel, the fiber and tower arm of Reliance Communications, was handed over to the bankruptcy court for debt resolution following a debt default of Rs 41,055 crore. A separate process for Reliance Communications was also completed with UV ARC. The matter regarding the UVARC deal is still pending in the court. Reliance Projects and Property Management Services (RPPMS), a subsidiary of Reliance Jio, also emerged as a successful bidder for the company, but the matter is pending before the National Company Law Tribunal, Mumbai.
In their letter to the Finance Ministry, the banks have said, NCLT approved the RPPMS resolution plan on December 3, 2020 and on December 28, the former promoter of Reliance Infratel, Delhi against the classification of RITL account as fraud by SBI as fraud. Obtained a stay order from the High Court. Reliance Infratel was promoted by the Anil Ambani family, while Reliance Jio is owned by his elder brother Mukesh Ambani. The Delhi High Court ordered status quo, but allowed Indian banks to file appropriate complaints with the Central Bureau of Investigation. Subsequently, on January 5, 2021, RPPMSL sought a copy of the forensic audit report from SBI citing adverse impact on its resolution plan.
It further said, in January, SBI and Indian banks filed complaints against RITL and its predecessor directors before the CBI.
Along with this, Chinese banks have said that since June 2021, there has been no major hearing on this matter and the RPPMS application is still pending.
In its letter, China Development Bank has stated that RPPMSL is using towers of RITL at very discounted cost and in view of this usage the lenders are incurring huge loss on maintenance of these towers.
Banks have requested MCA and IBBI to intervene in the RPPMSL application on an urgent basis and request the NCLT to direct the implementation of the RPPMSL resolution plan.
The banks said, “As financial creditors and stakeholders of RITL, who have been awaiting resolution of RITL since 2018, we request your intervention in RITL CIRP (where there is a clear NCLT approved resolution plan) on an urgent basis.”
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