Winning Bizness Desk

Mumbai.The State Bank of India has marked Reliance Communications' (RCOM) loan account as a fraud case. The bank is now preparing to report the company’s former director, Anil Ambani, to the Reserve Bank of India. This move has once again brought RCOM’s financial troubles into the spotlight. On June 23, 2025, SBI sent a letter to RCOM stating that its fraud investigation committee had reached this decision after a detailed forensic audit.

Funds were misused, says SBI

According to SBI, RCOM misused the loan money by diverting it to other group companies, including Reliance Telecom Limited. The bank also claims that the company violated several terms of the loan agreement. These loans were taken before the company entered insolvency proceedings in June 2019 due to its rising debt.

Anil Ambani to be reported to RBI

SBI is now processing documents to send Anil Ambani’s name to RBI in connection with the loan fraud. This is not the first time RCOM has faced such charges. In November 2024, Canara Bank had also declared RCOM’s loan as fraudulent, but the Bombay High Court put that action on hold. Currently, RCOM is under the management of resolution professional Aneesh Niranjan Nanavati, and a resolution plan is awaiting approval from the National Company Law Tribunal (NCLT).

RCOM claims protection under IBC

RCOM responded by saying it is protected under the Insolvency and Bankruptcy Code (IBC). The company argues that since the loans were taken before 2019, all related claims must be resolved through its resolution plan or liquidation process. As per Section 32A of IBC, once the resolution plan is approved, the company cannot be held responsible for past actions. RCOM added that it is also consulting legal experts to prepare a response to SBI.

Another challenge for Anil Ambani

This case is yet another blow for Anil Ambani, whose business group has faced several setbacks in recent years. Once a major player in India’s telecom and infrastructure sector, Ambani has been battling financial and legal issues for a long time. If SBI sends his name to RBI, it may affect his image and future business dealings. For RCOM, the fraud label could delay or complicate the ongoing insolvency resolution.