State Bank of India Removes Religare Finvest’s “Fraud” Label

The Central Fraud Registry database no longer contains the record of Religare Finvest Ltd (RFL), which the State Bank of India (SBI) had previously identified as fraudulent. According to a statement released on Friday, this decision is in accordance with an Order dated December 18, 2023, issued by the Delhi High Court, which directed SBI to remove the fraud tag.

SBI notified RFL via official correspondence today.

A one-time settlement (OTS) involving sixteen lenders was finalized by RFL, a fully owned subsidiary of Religare Enterprises Limited (REL), in March 2023. “The business gave the nation’s banking system over Rs 9,000 crore,” a statement from Religare Finvest Ltd said.

The Corrective Action Plan (CAP), which the Reserve Bank of India (RBI) imposed on RFL in January 2018, is now being lifted, it said.

“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,” stated Rashmi Saluja, executive chairperson of REL and CMD of RFL. This is a crucial step for RFL’s resuscitation.

“The announcement holds great significance for the company, as it will open doors for our strategic path towards achieving growth,” said RFL’s chief executive officer, Pankaj Sharma. RFL is excited for the RBI Corrective Action Plan (CAP), which went into force in January 2018, to be removed.

A web-based, searchable database on frauds reported by commercial banks and select financial institutions in accordance with Master Directions on the classification and reporting of frauds, the Central Fraud Registry was created under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016.