RCOM says SBI action will not affect ongoing CIRP process

On November 4, 2026, Reliance Communications Limited said State Bank of India’s decision to forward its name to credit information companies for inclusion among wilful defaulters is not expected to affect RCOM because the cited facilities pre-date its corporate insolvency resolution process and its creditor-approved resolution plan awaits tribunal approval.

Why does RCOM say the SBI action has no impact?

RCOM said the SBI classification is not expected to have an impact because the credit facilities identified by the bank relate to the period before its corporate insolvency resolution process, or CIRP, began. RCOM has been in CIRP under the Insolvency and Bankruptcy Code, 2016, since June 2019, with its affairs, business and assets managed by Resolution Professional Anish Niranjan Nanavaty from June 28, 2019.

RCOM said those pre-CIRP facilities must be resolved through either a resolution plan or liquidation under the Code. The filing does not state an amount for the facilities or quantify a financial effect, and RCOM recorded the actual impact on the listed entity and its financials as not applicable because it is under CIRP.

The comparison is between the facilities from before CIRP and RCOM’s current insolvency status from June 2019. RCOM’s position is that the earlier facilities are to be addressed within the resolution or liquidation process, rather than separately altering the company’s current CIRP status.

What did SBI decide about RCOM?

SBI said its Review Committee for Identification of Wilful Defaulters rejected representations and decided to forward the names to Credit Information Companies, or CICs, for necessary action on inclusion in the list of wilful defaulters. The bank’s October 31, 2026 letter was received by RCOM on November 3, 2026.

The bank said its Wilful Defaulter Identification Committee, or WDIC, rejected submissions at its March 2, 2026 meeting, and the Review Committee reviewed and confirmed that position at its September 16, 2026 meeting. SBI also said it reserved the right to publish photographs in newspapers informing the public of a wilful-defaulter declaration under Reserve Bank of India guidelines.

SBI’s committee record says the borrower’s account was classified as a non-performing asset, or NPA, on August 26, 2016, following repayment defaults. The record identifies RCOM as borrower and also names Anil Dhirubhai Ambani, described in the document as promoter, chairman and non-executive director under suspension; RCOM’s disclosure says SBI’s communication was addressed to the company and its erstwhile promoter.

What insolvency protections is RCOM relying on?

RCOM cited Section 14(1)(a) of the Code, which it said protects the company during CIRP from the institution or continuation of suits and proceedings, including execution of a judgment, decree or order before a court, tribunal, arbitration panel or other authority. RCOM presented this provision as one reason the SBI classification should not affect it during the ongoing process.

RCOM also cited Section 32A, saying it grants a corporate debtor protection from liability for offences committed before CIRP and from prosecution connected with those offences once the National Company Law Tribunal, or NCLT, approves a resolution plan under Section 31. RCOM said this protection applies if the plan results in a change in management or control in the manner prescribed by Section 32A.

RCOM further said that, upon NCLT approval of its resolution plan, it would be deemed to have immunity under Section 32A against liability for purported offences before CIRP, including liability that could arise from unlawful transactions identified in a forensic audit report. This is RCOM’s stated interpretation of statutory protections, contingent on plan approval and the prescribed change in management or control.

Where does the RCOM resolution plan stand now?

RCOM said its committee of creditors has approved a resolution plan in accordance with the Code, but the plan is awaiting approval from the NCLT’s Mumbai Bench. The November 4, 2026 filing does not identify the plan proponent, state its financial terms, or give a scheduled date for the tribunal’s decision.

This pending tribunal approval contrasts with SBI’s completed internal review. SBI said a notice of its decision to include names in the CIC list was sent on April 6, 2026 after the March 2, 2026 WDIC decision, while an opportunity for a personal hearing was offered for September 16, 2026.

SBI said that hearing was not availed. RCOM said Section 238 of the Code gives its provisions effect despite anything inconsistent in another law, linking its stated lack of impact to the insolvency framework, the pre-CIRP timing of the facilities and the still-pending tribunal approval rather than to any withdrawal of SBI’s action.

What action is RCOM taking after SBI’s letter?

RCOM said its Resolution Professional is examining SBI’s communication and seeking appropriate legal advice on the further course of action. The November 4, 2026 filing does not disclose whether RCOM has begun a court challenge, made a further representation to SBI, or received a response from CICs.

The disclosure was made under Regulation 30 of the Securities and Exchange Board of India’s Listing Obligations and Disclosure Requirements Regulations, 2015. Its Annexure A describes the event as a decision to proceed with forwarding RCOM’s name to CICs, while noting that SBI has stated the names are being forwarded for necessary action.

SBI’s record says RCOM’s Resolution Professional replied to an October 20, 2023 show-cause notice on October 30, 2023. The bank subsequently said no reply was received from RCOM after reminder letters dated October 24, 2025 and December 23, 2025, while submissions through Anil Ambani’s legal representative were considered by the WDIC on March 2, 2026.

Conclusion

SBI has completed its review process and is forwarding names to CICs, while RCOM remains in CIRP and says the cited facilities must be dealt with through that statutory process. RCOM’s stated position that there will be no impact rests on the pre-CIRP timing of the facilities, the CIRP moratorium and the protections it says the Code provides.

The next disclosed milestone is approval of the creditor-approved resolution plan by the NCLT Mumbai Bench. RCOM has also said its Resolution Professional is obtaining legal advice on SBI’s October 31, 2026 communication, so any subsequent legal step or tribunal decision would clarify how RCOM’s stated position is applied.