Transactions from Reliance Comm Infra to Reliance HR not fraudulent- NCLT
This story was originally published at 20:06 IST on 31 October 2025
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NEW DELHI – The Mumbai bench of the National Company Law Tribunal Friday held that transactions aggregating INR 15.03 billion from Reliance Communications Infrastructure Ltd. and others to Reliance HR Services Pvt. Ltd. were neither fraudulent nor preferential. The tribunal rejected Reliance Communications Infrastructure's plea seeking setting aside of INR 15.03 billion transactions.
The tribunal said Reliance HR Services does not fall within the definition of Section 5(24) of the Insolvency and Bankruptcy Code, 2016. Section 5(24) defines "related party," which includes individuals and entities connected to the corporate debtor, such as directors, key managerial personnel, partners, and companies where the debtor or its associates control a significant shareholding or board composition.
The preferential transactions are intended to avoid payments made to one or more creditors against their debt by the corporate debtor within the specified period of its insolvency commencement so that the other creditors' right in the insolvency estate are protected and they get an opportunity to have their rightful share in such estate on distribution, noted the tribunal. The current transaction in the case having been entered beyond a period of one year with Reliance HR Services, who is not a related party with Reliance Communications Infrastructure, cannot be set aside, said the tribunal.
In 2019, the tribunal had admitted State Bank of India's petition to start insolvency proceedings against Reliance Communications Infrastructure. According to auditors appointed by the resolution professional, Reliance Communications Infrastructure and other companies had assigned certain receivables amounting to 15.03 billion to Reliance HR Services, which amounted to preferential transaction. The auditors said that past directors of Reliance HR Services were also directors in various other companies of Reliance Anil Dhirubhai Ambani Group. Further, the registered address of Reliance HR Services and Reliance Communications Infrastructure was also the same, said the auditors. End
Reported by Surya Tripathi
Edited by Ashish Shirke
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