Anil Ambani Named in Fraud Account by SBI
• SBI Tags RCom Loan as Fraud
• Anil Ambani Reported to RBI
• RCom Faces Fresh CBI Heat
Unmesh Gujarathi
Sprouts News Exclusive
Contact: +91 9322755098
State Bank of India has officially declared Reliance Communications’ ₹3,000 crore loan account as ‘fraud’ and reported Anil Ambani to the RBI. The move follows regulatory procedures and past legal challenges. This classification may impact the ongoing insolvency process and restrict Ambani’s future corporate roles. CBI action is now expected.
Fresh Blow to Anil Ambani as RCom Faces Regulatory and Legal Headwinds
In a significant regulatory development, the Union government confirmed in Parliament that the State Bank of India (SBI) has officially classified the loan account of Reliance Communications Ltd (RCom) as “fraud.” The bank has also reported the name of former director Anil Dhirubhai Ambani to the Reserve Bank of India (RBI), following established regulatory procedures.
The disclosure was made by Minister of State for Finance Pankaj Chaudhary in a written reply to a question by MP S. Venkatesan in the Lok Sabha. According to the government, SBI’s exposure to RCom stands at over ₹3,000 crore, comprising ₹2,227.64 crore in fund-based loans and ₹786.52 crore in non-fund-based guarantees.
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SBI Reclassifies RCom as Fraud Account on June 13, 2025
Regulatory Procedure Followed After Due Diligence
The decision to classify the account as fraud was made on June 13, 2025, by SBI in accordance with the RBI’s Master Directions on fraud risk management. SBI followed its own board-approved policy for the classification, reporting, and monitoring of fraudulent accounts. The reclassification was subsequently disclosed to the stock exchanges by RCom’s resolution professional on July 1, 2025, as part of mandatory listing requirements.
Sprouts News Investigation Team (SIT) has learned that SBI undertook a comprehensive internal review before arriving at the decision. Show-cause notices (SCNs) were issued to RCom in December 2023, with follow-up correspondence in March and September 2024. According to SBI, the company’s responses were unsatisfactory, and the violations in loan terms remained unaddressed.
Previous Fraud Tag Withdrawn After Delhi HC Status Quo
Supreme Court Ruling Changed Legal Course
Notably, this is not the first time RCom was tagged as fraudulent. SBI had earlier classified the account and named Mr Ambani as fraudulent on November 10, 2020, and filed a complaint with the Central Bureau of Investigation (CBI) on January 5, 2021. However, the Delhi High Court issued a ‘status quo’ order the next day, leading to the return of the complaint.
In March 2023, the Supreme Court ruled that banks must provide borrowers a fair hearing before branding their accounts fraudulent. As a result, SBI reversed the classification on September 2, 2023, and restarted the process afresh — ultimately reinstating the fraud classification on June 13, 2025.
SBI notified RBI on June 24, 2025, and is now preparing to lodge a fresh complaint with the CBI.
RCom Confirms Receipt of Fraud Notification
No Rebuttal Yet from Anil Ambani or Company
RCom, in a stock exchange filing on July 2, 2025, acknowledged receiving SBI’s letter dated June 23. The letter informed the company and Mr Ambani about the fraud classification and regulatory reporting of his name. While RCom confirmed the regulatory disclosure, it did not issue a direct rebuttal or denial.
The classification does not obstruct the ongoing Corporate Insolvency Resolution Process (CIRP), but it introduces severe complications. According to banking sources, such fraud tags can impact the eligibility of resolution applicants, complicate deal structuring, and increase scrutiny of the resolution plan — currently awaiting clearance from the National Company Law Tribunal (NCLT), Mumbai bench.
Sprouts SIT Tracks High-Profile Collapse of Anil Ambani’s Empire
Personal Guarantees, Overseas Loans Add to Complexity
The Sprouts News Investigation Team (SIT) has been tracking Anil Ambani’s financial downfall for years. In 2015, Mr Ambani’s firms—RCom and Reliance Infrastructure Ltd (RInfra)—borrowed ₹565 crore and ₹635 crore respectively from SBI. He provided personal guarantees worth ₹1,200 crore.
Both firms defaulted in 2017, and the accounts were retrospectively declared NPAs from August 26, 2016. During NCLT hearings in 2020, it emerged that Mr Ambani had extended personal guarantees to Chinese lenders, including the Industrial and Commercial Bank of China and China Development Bank, without informing Indian banks—a move the tribunal noted as highly irregular.
In 2020, while appearing before a UK court via video conference under Rule 71 proceedings initiated by Chinese banks, Mr Ambani claimed he owned “nothing meaningful,” had sold off all his jewellery for ₹9 crore, and was dependent on loans from his wife and son for daily expenses.
Also Read: JSW’s Claim Over Crores‑Worth Alibag Mangrove Land Overturned.
Fraud Classification May Restrict Anil Ambani’s Future Role
RBI May Add to Wilful Defaulters’ List
The fraud tag could now severely limit Anil Ambani’s future in India’s corporate sector. RBI maintains a list of wilful defaulters and individuals linked to fraudulent accounts. Being on this list could disqualify Mr Ambani from holding board positions, raising capital, or participating in regulated financial entities.
SBI’s move also signals increasing accountability toward high-value corporate defaulters. The ministry of finance, in its reply, reaffirmed that all procedures were legally and regulatorily compliant and that SBI is actively working to recover dues.
Resolution Plan in Final Stage, but Criminal Angle Looms
Sprouts SIT Will Continue Monitoring CBI Filing and NCLT Verdict
RCom’s stock remains suspended, and the insolvency process is in its final phase. However, SBI’s move to file a fresh CBI complaint could change the legal landscape entirely. If the CBI proceeds with criminal charges based on SBI’s findings, both the resolution process and Anil Ambani’s liabilities may face a fresh round of challenges.
Sprouts News Investigation Team (SIT) will continue to follow developments around the NCLT verdict, CBI filing, and any response from Mr Ambani or Reliance Group representatives.
