Religare Welcomes Delhi High Court Order to Remove ‘Fraud’ Tag from Religare Finvest Limited

Business Wire IndiaThe Hon’ble Delhi High Court has ordered the removal of the ‘fraud’ tag from Religare Finvest Limited (RFL), a wholly owned subsidiary of Religare Enterprises Limited (REL), after lead bank had put the RFL’s account on the Reserve Bank of India’s (RBI) Central Fraud Registry. 

The order dated 18 December 2023 came after RFL had filed a Writ Petition before the Hon’ble Delhi High Court with respect to the declaration of RFL’s account as ‘fraud’ exposure by the lead Bank.

Earlier this year, in March, RFL achieved a milestone when it completed a One-Time Settlement (OTS) with 17 lenders through organic collections. The Company paid more than Rs 9000 crores to the country’s banking system. Currently, RFL is awaiting the lifting of the RBI Corrective Action Plan (CAP) that was implemented in January 2018.

Commenting on the removal of the fraud tag, Dr Rashmi Saluja, Executive Chairperson, REL & CMD RFL said, “We wholeheartedly welcome the Hon’ble High Court’s ruling, acknowledging it as a validation of our steadfast commitment to excellence and integrity. The decision by the Court is evidence of our resolve towards a full-scale revival of the business and establishing Religare Group as a diversified financial services conglomerate. Through our efforts, we have made Religare Finvest Limited business-ready.” 

Mr Pankaj Sharma, Chief Executive Officer, RFL said, “We are grateful to the Hon’ble High Court for the removal of the ‘fraud’ tag. We remain unwavering in our pursuit of good work, guided by the principles of fairness, integrity and the relentless pursuit of excellence and revival of the organisation.” 

The Central Fraud Registry was constituted under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions, 2016.