Stock Report

Delhi High Court orders removal of 'fraud' tag from Religare Finvest Limited

Posted On : 2023-12-20 08:49:56( TIMEZONE : IST )

The 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 businessready."

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.

Shares of Religare Enterprises Limited was last trading in BSE at Rs. 221.75 as compared to the previous close of Rs. 223.35. The total number of shares traded during the day was 18029 in over 736 trades.

The stock hit an intraday high of Rs. 225.30 and intraday low of 221.20. The net turnover during the day was Rs. 4015890.00.