After SBI, Bank of India Declares Reliance Communications and Anil Ambani’s Loan Account as ‘Fraud’

After the State Bank of India (SBI), the Bank of India has now classified Reliance Communications’ loan account as fraudulent and named its former director, Anil Ambani, citing alleged fund diversion in 2016. The development was revealed in a regulatory filing.

In August 2016, Bank of India sanctioned a ₹700 crore loan to Reliance Communications (RCom) for capital expenditure, operational expenses, and repayment of liabilities. However, according to the bank’s letter, part of the loan was invested in a fixed deposit against the terms of the sanction letter.

SBI complaint leads to CBI investigation

Reliance Communications confirmed receiving a letter from Bank of India dated August 8, 2025, informing the company of the fraud classification against RCom, Anil Ambani, and other former directors. This comes after SBI made a similar move in June this year, accusing the company of misappropriating funds.

Following SBI’s complaint, the Central Bureau of Investigation (CBI) carried out searches on August 23, 2025, at premises linked to Reliance Communications and Ambani’s residence. CBI said the case involves an alleged loss of ₹2,929.05 crore to SBI due to fund misappropriation.

Anil Ambani denies charges of fraud

A spokesperson for Anil Ambani strongly denied the allegations, stating that Ambani was a non-executive director at the time and had no role in day-to-day operations. The spokesperson also claimed Ambani was being “selectively singled out,” while other non-executive directors had been cleared by SBI.

Reliance Communications’ filing further revealed that its subsidiary, Reliance Telecom Ltd (RTL), also received a similar letter from Bank of India classifying loan accounts as ‘fraud’ against certain directors, including Grace Thomas.

RCom’s debt crisis and insolvency proceedings

According to Bank of India, Reliance Communications turned into a non-performing asset (NPA) on June 30, 2017, with dues of ₹724.78 crore. Despite repeated follow-ups, repayment was not made.

RCom had earlier disclosed that its total debt stood at ₹40,400 crore as of March 2025. The company has since been admitted into insolvency and bankruptcy proceedings and is currently managed by a Committee of Creditors led by SBI under the supervision of a Resolution Professional.

FAQ on Reliance Communications Fraud Case

Q1. Why has Bank of India declared Reliance Communications a fraud?
The bank alleges that part of a ₹700 crore loan sanctioned in 2016 was misused by being invested in a fixed deposit, violating loan terms.

Q2. Has SBI also declared RCom a fraud?
Yes. In June 2025, SBI classified Reliance Communications’ loan account as fraud and filed a complaint alleging misappropriation of funds.

Q3. What action has CBI taken in the Reliance Communications fraud case?
The CBI registered a case based on SBI’s complaint and conducted searches at Anil Ambani’s residence and properties linked to Reliance Communications.

Q4. What is Anil Ambani’s response to the allegations?
Anil Ambani has denied all charges, stating that he was only a non-executive director and had no role in managing the company.

Q5. What is the financial position of Reliance Communications now?
RCom disclosed a total debt of ₹40,400 crore as of March 2025 and is undergoing insolvency proceedings managed by a Committee of Creditors led by SBI.

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