The State Bank of India (SBI) and Bank of India (BoI) have officially declared Anil Ambani, Reliance Communications (RCom), and associated directors as involved in fraudulent activities concerning unpaid dues of approximately ₹2,929 crore.
This classification pertains to a loan sanctioned by Bank of India in August 2016, intended for capital expenditure, operational costs, and liability repayment, which was allegedly misused by investing in fixed deposits violating loan terms.
The Central Bureau of Investigation (CBI) has registered a criminal case based on SBI’s complaint, conducted searches at Ambani’s Mumbai residence and RCom’s offices, and is probing the alleged diversion of funds and financial irregularities. Anil Ambani, through a spoksperson, has denied the allegations, calling them selective. The case continues under judicial and regulatory scrutiny.
Loan Misuse, Fraud Declaration, and Investigation
Bank of India sanctioned a ₹700 crore loan to Reliance Communications in August 2016, with half disbursed by October 2016, for capital and operational expenditure and repayment of existing liabilities. Investigations revealed that a substantial part of this loan was diverted into fixed deposits and inter-company transactions, violating the loan sanction terms.
Bank of India formally classified the loan accounts of RCom, Anil Ambani, and former director Manjari Ashok Kacker as fraudulent on August 8, 2025, citing outstanding dues nearing ₹725 crore at that time. The State Bank of India had earlier declared RCom’s account fraudulent in June 2025 following similar concerns of misappropriation, involving amounts exceeding ₹2,200 crore.
Under RBI regulations, such fraud classification mandates criminal investigations and imposes restrictions on fresh borrowing for five years. The CBI registered a case based on SBI’s complaint alleging misappropriation of ₹2,929 crore. Subsequently, searches were conducted at six locations including Ambani’s residence and RCom’s offices in Mumbai to collect evidence related to loan misuse.
Background and Regulatory Actions Amid Insolvency Proceedings
Reliance Communications is undergoing insolvency resolution since 2019 due to debt exceeding ₹31,580 crore, supervised by a committee led by SBI and managed by a Resolution Professional. In parallel, multiple group companies related to Anil Ambani face enforcement scrutiny by the CBI and Enforcement Directorate (ED) for alleged financial irregularities, including suspected money laundering and diversion of loan funds.
Ambani was interrogated by the ED in early August 2025 for about 10 hours concerning loan transactions and related financial decisions. Despite this, Ambani’s spokesperson maintains he was a non-executive director during the alleged irregularities and denies any wrongdoing, describing the charges as selective.
Stock prices of other group companies like Reliance Power and Reliance Infrastructure fell following the CBI raid news, although both companies emphasised their operations are independent and unrelated to RCom’s issues. The ongoing insolvency proceedings and investigations reflect deep regulatory scrutiny aiming to ensure financial accountability.
The Logical Indian’s Perspective
This high-profile case underscores the importance of strict corporate governance, transparency, and ethical stewardship in India’s financial ecosystem. While vigilant action against financial misconduct is essential to protect banking institutions and public interests, it must be balanced with fairness, due process, and natural justice.
