Anil Ambani Fights Back: Legal Challenge Mounts Against SBI’s ‘Fraud’ Tag on RCom Loan

Anil Ambani has launched a legal counteroffensive after the State Bank of India (SBI) classified Reliance Communications’ (RCom) loan account as “fraudulent” and moved to report his name to the Reserve Bank of India (RBI). The decision, communicated via a letter dated June 23 and received by RCom on June 30, has reignited scrutiny over the telecom firm’s financial conduct prior to its insolvency.

 

SBI’s action follows multiple show-cause notices and a forensic audit that flagged alleged fund diversion and misuse of loans—including a ₹250 crore loan routed through related entities. The bank concluded that RCom failed to provide satisfactory explanations for the irregularities, prompting its Fraud Identification Committee to escalate the matter.

 

Key Highlights:

SBI tags RCom’s loan account as “fraud”, citing violations of loan terms and fund misappropriation.

Anil Ambani, former director, to be reported to RBI under fraud classification norms.

Loans in question predate RCom’s Corporate Insolvency Resolution Process (CIRP), which began in 2019.

RCom argues it is protected under Section 32A of the Insolvency and Bankruptcy Code, shielding it from liabilities for pre-CIRP offences.

A resolution plan has been approved by creditors and awaits NCLT clearance.

Ambani is legally contesting the classification, asserting that the matter must be resolved within the insolvency framework.

 

This development adds another layer of complexity to RCom’s long-running insolvency saga and could set a precedent for how legacy liabilities are treated under India’s evolving bankruptcy laws.

 

Sources: Business Standard, India Today, Hindustan Times