Delhi High Court has directed the removal of the 'fraud' label from Religare Finvest Limited, a Religare Enterprises subsidiary, following a successful writ petition.
Religare Enterprises said on Tuesday that the Delhi High Court has ordered the removal of the "fraud" tag from Religare Finvest Limited (RFL), after the lead bank in a consortium had put the RFL's account on the Reserve Bank of India's (RBI) Central Fraud Registry.
RFL is a wholly-owned subsidiary of Religare Enterprises Limited (REL).
The order dated December 18 came after RFL filed a writ petition before the court with respect to the declaration of its account as "fraud" exposure by the lead bank, Religare Enterprises said in a regulatory filing.
In March, RFL completed a one-time settlement (OTS) with 17 lenders through organic collections. The company paid more than Rs 9,000 crore to the country's banking system, it said.
Currently, RFL is awaiting the lifting of the RBI Corrective Action Plan (CAP) that was implemented in January 2018.
Commenting on the removal of the "fraud" tag, REL chairperson Rashmi Saluja said, "The decision by the court is evidence of our resolve towards a full-scale revival of the business and establishing Religare Group as a diversified financial services conglomerate. Through our efforts, we have made Religare Finvest Limited business-ready."