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RCom shares fall after show-cause notice from central bank
Reliance Communications (RCom) shares slipped 2.2% to ₹1.33 on Thursday, after the company disclosed it had received a show-cause notice from the Central Bank of India.
The bank wants to label ₹400 crore in loans as "fraud" and report it to the RBI.
This comes while RCom is already going through insolvency proceedings that started back in June 2019.
Accounts flagged have been non-performing since 2017
The accounts flagged have been non-performing since 2017, but things escalated after a forensic audit in 2020 found major financial irregularities—like nearly ₹12,700 crore out of ₹31,580 crore being routed to related parties.
Now, RCom has just 21 days to respond or risk these accounts being officially marked as fraudulent.