The audit found that Rs 6,265.85 crore worth of loans were specifically used to repay other bank loans, contrary to the agreed terms.
Additionally, Rs 5,501.56 crore was paid to related parties and Rs 1,883.08 crore was invested in instruments which were later redirected for unauthorized purposes.
These transactions indicated a clear misappropriation of funds. It was revealed that the loan funds obtained by RITL were routed through Reliance Communications Infrastructure Ltd. then transferred to RCOM.
These funds were used to pay RCOM’s debts or transferred to related parties.
Of the Rs 1,976 crore obtained by RITL, Rs 1,783.65 crore was again transferred to RCOM for unauthorized use.
The audit also mentioned misuse of loans sanctioned by Bank of Baroda for capital expenditure.
Instead of being used as intended, Rs 469.45 crore was diverted for non-capital expenditure purposes.
Likewise, sums were transferred between RCOM, RTL and RITL without their use being clear.
The bank’s notice also mentioned an instance where RCOM had transferred Rs 783.77 crore to RTL and Rs 1,435.24 crore to RITL from bank loans.
The abuse also extended to bill financing. RITL discounted bills worth Rs 200 crore but used the proceeds to pay related party loans instead of the intended purpose.
