SBI Labels RCom Loan as Fraud, To Report Anil Ambani to RBI
SBI Labels RCom Loan as Fraud, To Report Anil Ambani to RBI
Bank flags Rs.31,580 crore irregularity; RCom under insolvency, Ambani named in regulatory notice
The State Bank of India (SBI) has officially classified Reliance Communications’ (RCom) loan account as “fraud”, and will be reporting the company’s former director, Anil Dhirubhai Ambani, to the Reserve Bank of India (RBI), according to a regulatory filing dated June 30, 2025.
SBI’s move follows the findings of its Fraud Identification Committee, which uncovered significant deviations in the utilisation of loans extended to RCom and its subsidiaries — amounting to ₹31,580 crore. The bank stated that despite multiple notices, the company and its former director failed to provide satisfactory explanations for the alleged violations.
“SBI has decided to report the loan account of the Company as ‘fraud’ and to report the name of Shri Anil Dhirajlal Ambani to the RBI as per extant guidelines,” RCom said in its BSE filing.
The flagged loans reportedly pertain to the period before RCom entered the Corporate Insolvency Resolution Process (CIRP). SBI issued show-cause notices to the company in December 2023, March 2024, and September 2024, seeking explanations for the irregularities. However, the lender deemed their responses “insufficient.”
RCom, once part of the Anil Ambani-led Reliance Group, is undergoing insolvency proceedings. The company disclosed in April that its total debt stood at ₹40,400 crore as of March 2025. A resolution plan has already been approved by its committee of creditors, pending final approval from the National Company Law Tribunal (NCLT).
The SBI action follows a similar move by Canara Bank, which had earlier marked RCom’s account as fraud. That classification was temporarily stayed by the Bombay High Court.
While Anil Ambani, the younger brother of Mukesh Ambani, has stepped back from active business leadership, his association with RCom continues to draw regulatory scrutiny, especially in light of mounting defaults and alleged mismanagement of funds.
The final impact of the fraud classification will depend on the outcome of RCom’s ongoing resolution process and further regulatory decisions.
