Canara Bank tags Reliance Communications as fraud account

MUMBAI: Reliance Communications informed stock exchanges that Canara Bank has classified the company and its subsidiary,

Reliance Telecom

, as fraud accounts. The company noted that this development is not expected to impact its operations as it is undergoing the Corporate Insolvency Resolution Process (CIRP), which protects it from any proceedings
Canara Bank’s decision

came after a

forensic audit

report highlighted fraudulent transactions. The bank stated that Reliance Communications’ response to an earlier show-cause notice was unsatisfactory, leading to the account’s classification as fraud.