Reliance Communications Termed Fraud by PNB: Report

Reliance Telecom Limited, a subsidiary of Reliance Communications, has been officially classified as fraud by the Punjab National Bank (PNB). Reliance Communications, is in no way, related to Reliance Jio. Reliance Communications, on May 9, 2026, informed the stock exchanges that it has received a formal communication from Punjab National Bank’s Fraud Examination Committee. The explainations offered by Reliance Communications over missappropriation of funds worth Rs 201.51 crore were not found to be satisfactory by the Punjab National Bank. The bank has named the directors involved in this and said that Reliance Communications had artificially inflated the turnover of the company.

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Further, funds of Rs 221.93 crore were transferred from Reliance Telecom Limited to Reliance Communications, a portion of which was then invested into mutual funds (MF). Additionally, the company misused the funds raised via member banks for connected parties payments rather than being used for intended business purposes.

Another major claim by PNB is that amount worth Rs 1,347.70 crore found in the books of Reliance Communications was fictitious. Note that Reliance Communications and its susbsidary Reliance Telecom Limited are now under Corporate Insolvency Resolution Process (CIRP). These company frauds are from a time before the insolvency proceedings took place. PNB, will however, report the fraud to the Reserve Bank of India (RBI).