SBI Removes Fraud Tag from Religare Finvest Following Court Order

Bengaluru: The State Bank of India (SBI) has removed Religare Finvest Limited's (RFL) 'fraud' designation from the Central Fraud Registry database, marking a significant shift in their previous reporting. This move comes in response to a December 18, 2023, court order from the Honourable Delhi High Court instructing SBI to eliminate the fraud tag, a decision communicated to RFL formally today.

In March 2023, RFL, a wholly owned subsidiary of Religare Enterprises Limited (REL), reached a milestone by successfully completing a One-Time Settlement (OTS) with 16 lenders through organic collections, contributing over Rs 9000 crores to the country's banking system. RFL is currently awaiting the lifting of the Corrective Action Plan (CAP) imposed by the Reserve Bank of India (RBI) in January 2018.

In response to these developments, Dr. Rashmi Saluja, Executive Chairperson of REL & CMD of RFL, commented, "We acknowledge the positive outcome of our efforts. The removal of the 'fraud' tag reflects the commitment of the Company’s Board, management, and employees in restoring RFL and the Group from the aftermath of fraud by the previous promoters. It represents a pivotal step in the revival of RFL."

Mr. Pankaj Sharma, Chief Executive Officer of RFL, emphasized the significance of the announcement for the company, stating, "This development holds great importance for RFL as it paves the way for our strategic growth. The eagerly anticipated removal of the RBI Corrective Action Plan (CAP), initiated in January 2018, remains a key milestone for RFL."

The Central Fraud Registry, established under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016, functions as a web-based, searchable database documenting fraud reports from commercial banks and select financial institutions based on Master Directions on fraud classification and reporting.