In a major development disclosed in Parliament, the Centre has confirmed that the State Bank of India (SBI) officially classified Reliance Communications Limited (RCOM) and its promoter-director Anil D. Ambani as “fraud” in connection with a ₹2,000 crore bank loan case. The classification was made on June 13, 2025, under the Reserve Bank of India’s Master Directions on Fraud Risk Management and SBI’s internal policy, Minister of State for Finance Pankaj Chaudhary stated in a written reply to the Lok Sabha.
The disclosure comes amid intensified scrutiny of corporate loan defaults and financial irregularities involving high-profile industrialists. The Central Bureau of Investigation (CBI) has already launched a probe and conducted searches at Ambani’s residence in Mumbai and premises linked to RCOM.
🧭 Timeline of Events Leading to Fraud Classification
| Date | Event Description |
|---|---|
| Aug 26, 2016 | SBI’s credit exposure to RCOM begins |
| Nov 10, 2020 | Initial fraud classification by SBI |
| Jan 5, 2021 | Complaint filed with CBI |
| Jan 6, 2021 | Delhi HC issues status quo order |
| Mar 27, 2023 | SC mandates borrower representation before fraud label |
| Sep 2, 2023 | SBI reverses fraud classification |
| Jul 15, 2024 | RBI issues revised fraud classification circular |
| Jun 13, 2025 | SBI reclassifies RCOM and Anil Ambani as ‘fraud’ |
| Jun 24, 2025 | SBI reports fraud to RBI |
| Aug 23, 2025 | Centre confirms classification in Lok Sabha |
The bank is now preparing to lodge a formal complaint with the CBI, which has already registered a fresh FIR and begun investigations into the alleged misuse of funds.
📊 SBI’s Exposure to Reliance Communications
| Credit Type | Amount (₹ crore) | Status |
|---|---|---|
| Fund-Based Loans | ₹2,227.64 | Principal + accrued interest |
| Non-Fund-Based Guarantees | ₹786.52 | Bank guarantees |
| Total Exposure | ₹3,014.16 | Under investigation |
RCOM is currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. A resolution plan approved by the Committee of Creditors was filed with the National Company Law Tribunal (NCLT), Mumbai, in March 2020, but final approval is still pending.
🔍 Allegations and CBI Investigation Details
The CBI’s FIR alleges that RCOM and its promoter Anil Ambani engaged in criminal conspiracy, cheating, and breach of trust to secure credit facilities from SBI. The agency is probing multiple layers of financial irregularities, including:
- Misrepresentation to obtain loans
- Diversion of sanctioned funds
- Fictitious debtors and inter-company transactions
- Misuse of sales invoice financing and bill discounting
- Write-off of capital advances to group entities
| Alleged Irregularity | Description |
|---|---|
| Sales Invoice Financing | Routed through Reliance Infratel Ltd |
| Capital Advances | Written off to Netizen Engineering Pvt Ltd |
| Inter-Corporate Deposits | Used to move funds across ADA Group companies |
| Loan Account Manipulation | Suspected fund routing and fictitious entries |
The Enforcement Directorate (ED) is also investigating Ambani in multiple high-value bank fraud cases. His statement was recorded earlier this month in connection with suspected financial misconduct.
🧠 Legal Proceedings and Regulatory Actions
SBI has initiated a Personal Insolvency Resolution Process against Anil Ambani, which is currently being heard by the NCLT. The bank’s internal probe flagged “deviation in the utilisation of loans” and a “complex web of fund movements” among Reliance ADA Group entities.
| Legal Action | Status |
|---|---|
| Corporate Insolvency (RCOM) | Resolution plan filed, awaiting NCLT nod |
| Personal Insolvency (Anil Ambani) | Under NCLT review |
| CBI FIR | Registered, searches conducted |
| ED Investigation | Ongoing, statement recorded |
The Supreme Court’s March 2023 ruling in SBI vs Rajesh Agarwal mandated that borrowers be given an opportunity to represent their case before being labeled as fraud. SBI followed this due process before reclassifying the account in June 2025.
📉 Market and Regulatory Disclosures
RCOM’s Resolution Professional informed the Bombay Stock Exchange of the fraud classification on July 1, 2025, in compliance with disclosure norms. The company has not issued a public statement on the matter, but sources indicate that legal counsel is preparing a response.
| Disclosure Requirement | Compliance Status |
|---|---|
| BSE Notification | Filed on July 1, 2025 |
| RBI Reporting | Completed on June 24, 2025 |
| CBI Complaint Filing | In process |
| SEBI Oversight | Monitoring regulatory compliance |
Anil Ambani has denied all allegations, stating that he has been “selectively singled out” despite being a non-executive director at the time of the alleged fraud. He has challenged the classification before judicial forums and maintains that the matter remains sub judice.
📌 Conclusion
The Centre’s confirmation in the Lok Sabha that SBI has officially classified Reliance Communications and Anil Ambani as “fraud” marks a significant escalation in India’s crackdown on corporate loan defaults. With the CBI and ED deepening their investigations, and insolvency proceedings underway, the case could have far-reaching implications for corporate governance, regulatory oversight, and public sector banking accountability.
As the legal and investigative processes unfold, the spotlight remains firmly on one of India’s most high-profile financial controversies—one that could reshape the narrative around promoter liability and institutional risk management.
—
Disclaimer: This article is based on publicly available news reports and official statements as of August 24, 2025. It is intended for informational purposes only and does not constitute legal, financial, or investment advice.
