Anil Ambani’s Reliance Communications in trouble; SBI declares loan account as ‘Fraud’

SBI has put Anil Ambani’s company Reliance Communications’ loan account in the ‘fraud’ category. Now the bank is preparing to send a report to the Reserve Bank of India. This decision has been taken after the company’s violation of loan terms and financial irregularities.

New Delhi: Anil Ambani's company Reliance Communications, which once held a prominent position in the country's telecom sector, has been given a big blow by the State Bank of India (SBI). The bank has put the company's loan account in the 'fraud' category. After this decision, now SBI is preparing to send a report of the company and its former director Anil Ambani to the Reserve Bank of India (RBI).

The company confirmed this decision in a stock exchange filing on Tuesday. According to the report, this decision has been taken in reference to the credit facilities given in August 2016. Currently, Reliance Communications is undergoing corporate bankruptcy under the Insolvency Code (IBC). is undergoing resolution process (CIRP) and is awaiting the final decision of the National Company Law Tribunal (NCLT).

SBI Issued Show Cause Notices

According to some media reports, SBI had issued show cause notices to the company in December 2023, March 2024 and September 2024. After reviewing the company's responses, the bank came to the conclusion that Reliance Communications did not comply with the loan terms and made serious irregularities in the information of the accounts.

The bank has clarified that it has now declared this loan account as 'fraud' and along with it the report of the persons concerned will also be sent to the RBI, which also includes the name of Anil Ambani.

Reliance Communications' Response

The company said in its response that the credit facilities provided by SBI relate to the period before the commencement of CIRP in 2019. The company claims that as per Section 32A of the IBC, if the resolution plan is approved, it gets exemption from the liabilities associated with prior offences.

Reliance Communications has also said that these cases should be resolved only under the constitutional resolution plan or liquidation and the company currently has the legal protection of IBC. Also, the company also said that it is taking legal advice on this issue. Such a case has come before It is worth noting that this is not the first time that a bank has termed the account of Reliance Communications as fraud.

In November 2024, Canara Bank also took a similar step, but in February 2025, the Bombay High Court stayed that decision, saying that the borrower was not given a fair opportunity to be heard.