New Delhi: Delhi High Court has directed the two state owned banks, Union Bank of India and Indian Overseas Bank to maintain the status quo in a matter pertaining to the classification of accounts of Reliance Communication Ltd. (RCOM) and its subsidiary, Reliance Telecom Ltd. (RTL) as fraudulent.
RCOM and RTL had challenged the recent move by the Union Bank of India and Indian Overseas Bank to mark these accounts as fraudulent.
Hearing the petition, Delhi HC has directed the banks to maintain the status quo and no coercive action till the next date of hearing. The next date of hearing is 13 January 2021.
As per reports, State Bank of India( SBI), Union Bank of India (UBI) and Indian Overseas Bank (IOB) had marked RCOM account as fraudulent.
In addition to that, SBI and UBI have also classified RTL account as fraudulent. RTL is a 100% subsidiary of RCOM.