SBI labels Reliance Communications and Anil Ambani 'fraud'
SBI labels Reliance Communications and Anil Ambani 'fraud'
Set to lodge a complaint with the Central Bureau of Investigation
The State Bank of India (SBI) has classified Reliance Communications and its promoter Anil D Ambani as 'fraud' The action follows the Reserve Bank of India (RBI) guidelines and the bank's fraud management policy.
SBI's credit exposure in Reliance includes significant outstanding amounts and bank guarantees, even as the company undergoes insolvency resolution.
The bank is readying to file a complaint with the Central Bureau of Investigation (CBI), the Parliament was informed by Pankaj Chaudhary, Minister of State for Finance.
In a written response in the Lok Sabha, the minister said that the entities were labeled swindlers on 13 June 2025, in accordance with the RBI's Master Directions on Fraud Risk Management and Bank's Board-approved policy on Classification, Reporting & Management of Frauds.
He added, "On 24 June 2025, the bank reported classification of fraud to the RBI and is also in the process of lodging a complaint with the CBI.”
As part of disclosure compliance, on 1 July, the Resolution Professional (RP) of Reliance informed the Bombay Stock Exchange regarding SBI’s classification.
SBI’s credit exposure includes, fund-based principal outstanding of Rs.2,227.64 crore along with the accrued interest and expenses (effect 26 August 2016) and non-fund based bank guarantee of Rs.786.52 crore.
Meanwhile, Reliance is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. The resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT), Mumbai, on 6 March 2020. The tribunal’s approval is pending.
The SBI has also initiated Personal Insolvency Resolution Process under IBC against Anil D Ambani. The NCLT is hearing the matter. Earlier, the bank classified the account and promoter Anil D Ambani as 'fraud' on 10 November 2020 and filed a complaint with the CBI on 5 January 2021. However, the complaint was returned due to the 'status quo' order of the Delhi High Court on 6 January 2021.
Meanwhile, a 27 March 2023 judgment of the Supreme Court in the SBI vs Rajesh Agarwal & Others case mandated that lenders provide borrowers with an opportunity to represent before classifying their accounts as fraud.
Therefore, on 2 September 2023, the bank reversed the fraud classification in the account. But the process was re-run and the account was again classified as fraud after following the due process as per the 15 July 2024 RBI circular.
