Rel Home NCD holders claim BoB flouted SC order

“BoB, the lead bank of the inter-creditor agreement consortium, not only participated but also ensured the Supreme Court order is breached with impunity and retail debenture holders are duped of rightful entitlement of redemption at full face value,” they said.

A copy of the legal notice was reviewed by Mint.“BoB has played an active role in aiding manipulative and fraudulent schemes, and caused losses to the clients and thousands of other retail debenture holders of RHFL,” it said.

All debenture holders with investments of up to ₹5 lakh were entitled to receive 100% of their principal investment under the resolution plan approved by the apex court in its 3 March order. The notice was issued by those who had subscribed to the non-convertible debentures issued by Reliance Home Finance but did not get the redemption amount.

Since then, these investors have been locked in a legal tussle with the public sector lender as well as Reliance Home Finance before various courts and tribunals. The letter also alleged that “the bank is a part of a multipronged fraudulent scheme”.

This, the debenture holders alleged, involved submission of incorrect information to the Supreme Court which led to over 17,109 retail debenture holders getting paid 100% of their dues, whereas 2,311 retail debenture holders did not get their dues.

In 2017-18 Reliance Home Finance issued NCDs worth ₹6,610 crore which were sold to qualified institutional buyers, or individuals. Mint had reported on 25 May that the debenture holders have filed a contempt case against the resolution applicant, Authum Investment and Infrastructure Ltd, Reliance Home, and IDBI Trusteeship, alleging “wilful disobedience” of the SC order.

An email query to Bank of Baroda remained unanswered till press time.

Updated: 06 Jun 2023, 11:19 PM IST