The State Bank of India (SBI) has classified the loan account of Anil Ambani Reliance Communications (RCom) as ‘fraud’. RCom filed a securities filing on Tuesday, disclosing the circulate of India’s largest lender. Last year, Canara Bank also tagged the RCom loan account as ‘fraud’.
Reliance Communications is a part of the company led through Anil Ambani, the brother of India’s richest individual, Mukesh Ambani, who chairs the oil-to-telecoms conglomerate Reliance Industries. According to Reuters, Reliance Communications disclosed in April that as of March 2025, it had a total debt of ₹40,400 crore.
SBI Tags Anil Ambani Company as” Fraud”
Under Indian banking legal guidelines, once an account state as fraud, it reported to enforcement businesses activity. The borrower barred from securing any further finance from banks and other regulated financial institutes for a initial period of 5 years. The SBI classified the Reliance Communications loan account as ‘fraud’ after finding alleged diversion of loan finances in transactions back to 2026.
The SBI stated it gave Anil Ambani and the corporation several opportunities in the past two years to reply to the allegations of fraud in loans taken out in 2016 from Indian banks that labeled as non-existent; however, it found their replies “insufficient”.
Founder responds to SBI’s letter
Anil Ambani state that SBI’s order is in direct contravention of judgments of the Supreme Court, the Bombay High Court, and RBI guidelines. “SBI’s order is in direct contravention of diverse judgments of the Hon’ble Supreme Court and the Hon’ble Bombay High Court, as well as RBI guidelines,” the announcement read. SBI did not respond to Ambani’s communications around the SCN for almost a year, nor furnished the records behind their decision to permit him to reply to the SCN.
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