State Bank of India (SBI) has removed the record of Religare Finvest Ltd (RFL), previously labelled as a fraud exposure, from the Central Fraud Registry database.

This follows the Delhi High Court’s December 18 order setting aside the declaration of RFL, a wholly-owned subsidiary of Religare Enterprises Ltd (REL), as a fraud by the lead bank. SBI, which is the lead bank of RFL, had put RFL’s account on the Reserve Bank of India’s Central Fraud Registry.

The Delhi High Court order dated December 18, 2023 came after RFL had filed a writ petition with respect to declaration of RFL’s account as ‘fraud’ exposure by the lead Bank

On Thursday, SBI sent in a communication to REL, conveying that the record of RFL stands removed from the central fraud registry, said REL in a stock exchange filing. 

The Central Fraud Registry, which was established by the RBI in 2016, serves as a Web-based and searchable database, documenting frauds reported by commercial banks and select financial institutions according to the Master Directions on the classification and reporting of frauds.

In March 2023, RFL completed a One-Time Settlement (OTS) with 16 lenders through organic collections. The company made payments exceeding ₹ 9000 crores to the country’s banking system.

Currently, RFL is awaiting the lifting of the Corrective Action Plan imposed by the RBI in January 2018.

‘pivotal step’

Commenting on the latest development, Rashmi Saluja, Executive Chairperson, REL, and CMD, RFL, 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. This is pivotal step in the revival of RFL.

 Pankaj Sharma, Chief Executive Officer, RFL, said: The announcement holds great significance for the company, as it will open doors for our strategic path towards achieving growth”.

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