SBI Tags RCom Loan as Fraud, Puts Anil Ambani in RBI Crosshairs

State Bank of India (SBI) has classified the loan account of Reliance Communications (RCom) as ‘fraud’ and is reporting the company’s former promoter and director, Anil Ambani, to the Reserve Bank of India (RBI). This action follows a forensic audit and multiple show-cause notices, with SBI citing significant irregularities, including alleged fund diversion and violations of loan terms.

 

Key Highlights:

 

Fund Diversion: Of the ₹31,580 crore in loans, only 44% went towards loan repayment and obligations, while 41%—over ₹12,600 crore—was routed to connected parties through complex inter-group transactions, not aligned with sanctioned purposes.

 

Irregularities: Loans meant for statutory dues and capital expenditure were diverted to group entities and routed through subsidiaries, raising concerns about misappropriation and breach of trust.

 

Regulatory Action: SBI’s Fraud Identification Committee decided on June 13, 2025, to classify the account as fraudulent and report Anil Ambani to the RBI, in line with banking regulations. Once tagged as fraud, the account is referred for criminal action, and the borrower is barred from future bank finance for at least five years.

 

Company Response: RCom, currently under insolvency proceedings, claims it was not given adequate opportunity to respond and is seeking legal advice on the matter.

 

Outlook:

The move marks a major escalation in the RCom saga, with possible criminal investigations and further regulatory scrutiny ahead for Anil Ambani and the company.

 

Sources: New Indian Express, Business Standard, Financial Express, Hindustan Times