RCom shares: Canara Bank labels unit 'wilful defaulter'; stock up 5%

Shares of Reliance Communications Ltd (RCom) were in focus in Tuesday's trade after Canara Bank labelled its unit Reliance Telecom Reliance Telecom (RTL) as wilful defaulter. Reliance Telecom has received a letter from Canara Bank regarding the same.

"Canara Bank has, inter alia, informed RTL that the Review Committee for Wilful Defaulters of the Bank, vide its decision dated August 31, 2026, has concluded that there are sufficient grounds for classification of Reliance Telecom Limited as a Wilful Defaulter in accordance with the applicable guidelines issued by the Reserve Bank of India (RBI)," RCom said.

Earlier in the day, RCom shares got locked at its 5 per cent circuit limit at Re 0.89 apiece.

RCom said the letter further stated that the promoter of the holding company, Reliance Communications Limited, in his capacity as an erstwhile chairman & director of RCom, has also been classified as a 'wilful defaulter' in accordance with the applicable RBI guidelines.

Both RCom and RTL are undergoing corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. The resolution plans in respect of RCOM and RTL, have been approved by the committees of creditors of RCOM and RTL respectively, in accordance with the Code and are presently awaiting approval of the Hon’ble National Company Law Tribunal, Mumbai Bench (“NCLT”).

RCom is under the control of the resolution professional and the promoter of Reliance Communications Limited has ceased to be a chairman and director of RCom with effect..

RCom said the loan account referred in the Letter pertain to the period prior to the CIRP of RTL, and is required in terms of the Code, to be necessarily resolved as a part of a resolution plan or in liquidation, as the case may be.

"Furthermore, legal advice is being sought on the way forward with respect to this development," RCom said.