In a significant development, the State Bank of India (SBI) has officially classified the loan account of Reliance Communications (RCom) as “fraud” and has reported the company’s former director, Anil Ambani, to the Reserve Bank of India (RBI). This decision, detailed in a regulatory filing by RCom, follows an internal probe revealing large-scale financial irregularities and possible fund diversion within the Reliance Group.
According to a letter received by RCom from SBI on June 23, 2025, the bank acted in accordance with RBI guidelines after its Fraud Identification Committee completed a review. The bank’s investigation uncovered that out of ₹31,580 crore loaned to RCom and its subsidiaries, ₹13,667 crore (44%) was used to repay existing liabilities, while ₹12,692 crore (41%) was transferred to related parties, actions inconsistent with the stated purpose of the loans.
The committee cited multiple instances of misappropriation, including the diversion of a ₹250-crore loan from Dena Bank and a ₹248-crore loan from IIFCL. In both cases, funds were redirected through group companies without proper justification. Notably, SBI flagged a network of over ₹41,000 crore in inter-corporate deposit transactions among RCom, Reliance Infratel Ltd (RITL), Reliance Telecom Ltd (RTL), and Reliance Communications Infrastructure Ltd (RCIL), raising concerns over fictitious or circular transactions designed to mask financial irregularities.
One particularly alarming detail in the report was the alleged use of a ₹100-crore intraday fund limit to move money through group companies multiple times in a single day—an action seen as an attempt to manipulate financial statements.
The classification of the loan as fraud obliges SBI to notify the RBI within 21 days and report the matter to investigative agencies such as the Central Bureau of Investigation (CBI). Under RBI rules, borrowers found guilty of fraud are barred from accessing new credit lines for five years following full repayment of the debt.
The financial misconduct was uncovered despite RCom being under the Corporate Insolvency Resolution Process (CIRP) since June 2019. The company’s operations are currently managed by Resolution Professional Anish Niranjan Nanavaty, as appointed by the National Company Law Tribunal (NCLT), Mumbai. SBI’s allegations relate to the period before insolvency proceedings began.
Public reactions to the revelations have been sharp, with critics questioning the leniency shown towards Ambani. Political commentator Dr. Ranjan pointed out that loans worth ₹49,000 crore taken by Ambani from 53 banks have seen negligible recovery, yet no significant punitive action has followed. He contrasted this with the treatment often meted out to small borrowers, raising concerns about systemic inequality in financial accountability.
The case is expected to lead to similar action by other lenders involved with RCom and could mark a turning point in how large-scale corporate loan frauds are addressed in India.
