State Bank of India (SBI), a key lender to Religare Finvest Limited (RFL), has expunged RFL's record, previously marked as a fraud, from the Central Fraud Registry database. This action follows a court order dated December 18, 2023, issued by the Delhi High Court instructing SBI to revoke the fraud designation.
SBI officially conveyed this decision to RFL on Friday. In March 2023, RFL, a wholly-owned subsidiary of Religare Enterprises Limited, successfully concluded a one-time settlement with 16 lenders through organic collections. The company made payments exceeding Rs 9,000 crore to the country's banking system.
Presently, RFL is awaiting the removal 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, "We are pleased to witness the positive outcome of our efforts. 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 a pivotal step in the revival of RFL."
Pankaj Sharma, Chief Executive Officer of RFL, said that these would open doors for a strategic path towards achieving growth. He said, "The announcement holds great significance for the company, as it will open doors for our strategic path towards achieving growth. RFL eagerly awaits the much anticipated removal of the RBI Corrective Action Plan (CAP) that was put into effect in January 2018."
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, in accordance with the Master Directions on the classification and reporting of frauds.