Delhi High Court has reportedly directed Union Bank of India and Indian Overseas Bank to maintain the status quo in a matter pertaining to the classification of accounts of Reliance Communication (RCOM) and its subsidiary, Reliance Telecom Limited (RTL) as fraudulent.
Recently, RCOM and RTL had filed a petition challenging Union Bank of India’s and Indian Overseas Bank’s move to mark these accounts as fraudulent.
Following this, Delhi HC has directed the banks to maintain the status quo and to not take any coercive action till the next date of hearing, which is scheduled to be held on January 13, 2021.
As per industry sources, recently State Bank of India (SBI), Union Bank of India and Indian Overseas Bank had marked RCOM account as fraudulent.
