SBI Declares Reliance Communications Loan as Fraud, Sends Anil Ambani's Name to RBI. The bank has stated that it is proceeding to report the loan account and the name of promoter Anil Ambani to the RBI, under the Master Direction and relevant circulars of the RBI.
State Bank of India (SBI), the largest public sector bank in the country, has declared the loan account of Reliance Communications Limited (RCOM) as 'fraud'. Subsequently, the bank has also initiated the process of reporting the name of former director Anil Ambani to the Reserve Bank of India. This information was provided by Reliance Communications in its regulatory filing to the stock market on Tuesday.
Notice Sent on June 23rd
A letter sent by the bank on June 23, 2025, stated that the SBI's Fraud Identification Committee had decided to declare RCOM's loan account as fraud. The company received this letter on June 30. The decision was based on potential fund diversion, violations of loan terms, and other irregularities through Reliance Telecom Limited and other group companies, as mentioned in the letter.
Anil Ambani's Name Reaches RBI
SBI has clarified that it is proceeding to report this loan account and Anil Ambani's name to the Reserve Bank of India in accordance with the Master Direction and circulars of the RBI. This process is being carried out under regulatory guidelines.
Previous Fraud Case
This is not the first time a bank has declared RCOM's account as fraudulent. Previously, in November 2024, Canara Bank had also declared the company's loan account as fraud. However, the Bombay High Court had stayed this decision at the time.
Claims Predate Insolvency Process
The step taken by SBI relates to the loans and credit facilities taken before the Corporate Insolvency Resolution Process (CIRP) initiated by RCOM in 2019. CIRP was implemented on the company in June 2019, after which the company's operations have been under the supervision of Resolution Professional Anish Nanavaty. The matter is currently being heard at the National Company Law Tribunal (NCLT) in Mumbai, where a resolution plan is under consideration.
Company's Response
Reacting to this, Reliance Communications stated that the company has been operating under CIRP for several years. The company's creditors have approved the resolution plan, and it is now awaiting final approval from the NCLT. The company also clarified that the loan facilities mentioned in the letter sent by SBI predate the implementation of CIRP.
Company Seeking Legal Counsel
Reliance Communications also stated in its statement that it is seeking legal advice regarding the current developments and that its future strategy will be determined based on this advice. The company said that until the resolution plan receives final approval under the CIRP process, no legal action or litigation can be initiated.
Role of Group Companies also Questioned
The SBI's letter also mentioned that several irregularities related to the loan occurred through Reliance Telecom Limited and other group companies. Allegations of potential fund diversion, violation of loan terms, and misuse of funds have been made through these companies.
Market's Focus Now on NCLT Decision
Now that the matter is pending before the NCLT, the next major step will be the approval of the resolution plan. If the proposed plan is approved, RCOM may be exempt from the alleged offenses prior to the implementation of CIRP. However, the step taken by SBI is considered legally and commercially significant.
