The Union government confirmed in Parliament that State Bank of India (SBI) has officially classified the loan account of Reliance Communications Ltd (RCom) as 'fraud' and has reported the name of the company's former director Anil Dhirubhai Ambani to Reserve Bank of India (RBI), following due regulatory process. The disclosure was made in a written reply to the Lok Sabha by the minister of state for finance, Pankaj Chaudhary, in response to a question raised by member of Parliament (MP) S Venkatesan.
SBI’s total exposure to the troubled telecom company stands at over Rs3,000 crore. This includes Rs2,227.64 crore in fund-based principal outstanding, along with Rs786.52 crore in non-fund-based bank guarantees, the government says.
RCom, once a key player in India’s telecom sector, is undergoing corporate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). SBI's decision to declare the account as fraud marks a significant development in the prolonged financial saga surrounding the Anil Ambani-led company and comes years after the account was first declared a non-performing asset (NPA) in 2017, retrospectively dated to August 2016.
The government confirmed that SBI reclassified the account as fraud on 13 June 2025 in accordance with RBI’s master directions on fraud risk management and SBI’s own board-approved policy on classification, reporting, and management of frauds. This decision was reported by the resolution professional of RCom to the stock exchanges on 1 July 2025, as part of regulatory disclosure obligations.
The action against RCom and its promoter-director comes after a series of procedural steps including show-cause notices (SCNs), unsatisfactory replies from the company, and internal assessment by SBI’s fraud identification committee. SBI had issued its first SCN to RCom on 20 December 2023, followed by additional correspondence in March and September 2024.
According to SBI’s findings, RCom had failed to adhere to the agreed terms and conditions of its loan agreements, and there were irregularities in the operation of the account. The lender concluded that the responses provided by the borrower did not satisfactorily explain these violations. A detailed and reasoned fraud classification order was issued by SBI thereafter.
The government's reply also disclosed that SBI had earlier classified the account and named Mr Ambani as fraudulent on 10 November 2020 and filed a complaint with the central bureau of investigation (CBI) on 5 January 2021. However, that complaint was returned following a 'status quo' order issued by the Delhi High Court on 6 January 2021.
Subsequently, the Supreme Court ruled in March 2023 that lenders must allow borrowers an opportunity to be heard before fraud classification. Following this, SBI reversed the classification on 2 September 2023.
After issuing fresh notices and conducting a new round of examination, SBI reinstated the fraud classification on 13 June 2025. SBI informed RBI of its action on 24 June 2025 and is in the process of lodging a fresh complaint with CBI.
In its stock exchange filing dated 2 July 2025, RCom acknowledged receipt of SBI’s letter dated 23rd June, which was received by the company on 30 June 2025. The letter informed both the company and Mr Ambani about the fraud classification and the decision to report Mr Ambani’s name to the RBI under extant guidelines. RCom’s filing did not offer any direct rebuttal but confirmed the disclosure under SEBI’s Listing Obligations and Disclosure Requirements. (
Read: SBI To Mark Reliance Communications Loan Account as Fraud, Report Anil Ambani to RBI)
While the classification of the loan account as fraud does not halt the ongoing corporate insolvency resolution process (CIRP), it could have far-reaching implications for the resolution process and for Mr Ambani personally. RBI maintains a list of wilful defaulters and individuals associated with fraudulent accounts, and such classification may limit Mr Ambani’s ability to raise funds or hold key positions in Indian companies in the future.
Anil Ambani, once among the wealthiest businessmen in India, has faced multiple financial and legal challenges in recent years. In 2015, RCom and Reliance Infrastructure Ltd (RInfra), both promoted by Mr Ambani, borrowed Rs565 crore and Rs635 crore, respectively, from SBI. A personal guarantee of Rs1,200 crore was provided by Mr Ambani for these loans. After both companies defaulted in 2017, the accounts were retrospectively declared as NPAs from 26 August 2016.
During hearings in the national company law tribunal (NCLT) in 2020, it emerged that Mr Ambani had extended personal guarantees to Chinese lenders — the Industrial and Commercial Bank of China, China Development Bank, and the Export-Import Bank of China — without informing SBI, an action the tribunal viewed as problematic.
While the resolution plan for RCom has already been approved by its committee of creditors and is awaiting clearance from NCLT, the fraud classification may complicate the final stages f the process, especially with SBI now moving to initiate criminal proceedings through the CBI.
The ministry of finance (MoF), in its parliamentary reply, reaffirmed that all action has been taken in accordance with law and regulatory guidelines and that SBI is continuing with efforts to recover the lender’s dues.
In September 2020, appearing before a UK Court (under Rule 71) via video conference over a lawsuit brought by three State-controlled Chinese banks over non-repayment of loans, Anil Ambani had claimed that his current expenses are being borne by his wife and family and that he has even taken a loan from his son Anmol to the tune of several crores of rupees. He further claimed that he had sold off all his jewellery for Rs9 crore to pay off legal expenses and now owns 'nothing meaningful'. (
Read: Anil Ambani Tells London Court That He Has Sold Jewellery and Taken Loans from His Mother and Son)
RCom’s stock, which has been suspended from trading, remains under the insolvency framework, and further updates are expected once NCLT delivers its verdict on the resolution plan.
