NEW DELHI: Following the State Bank of India, Bank of India has classified the loan account of insolvent Reliance Communications (RCom) as fraudulent and named its former director, tycoon Anil Ambani, citing alleged fund diversion in 2016, according to a regulatory filing.
The state-owned bank had extended a ₹700 crore loan in August 2016 to RCom to support capital and operational expenses and repay existing liabilities. Half of the disbursed amount in October 2016 was reportedly placed in a fixed deposit, which was not allowed under the loan sanction terms, according to a bank letter disclosed by RCom in a stock exchange filing.
RCom stated that on August 22 it received a letter from Bank of India, dated August 8, notifying the bank’s decision “to classify the loan accounts of the company, Anil Dhirajlal Ambani (promoter and erstwhile director), and Manjari Ashok Kacker (erstwhile director) as ‘Fraud’.”
Earlier in June, the State Bank of India had similarly classified RCom’s accounts as fraudulent, alleging misappropriation of funds through transactions that violated loan conditions.
Following SBI’s complaint, the Central Bureau of Investigation (CBI) conducted searches on August 23, 2025, at premises linked to RCom and Ambani’s residence. The agency has registered a case after SBI reported a loss of ₹2,929.05 crore due to the alleged misappropriation by RCom and Ambani, the younger brother of Asia’s richest man, Mukesh Ambani.
Anil Ambani’s spokesperson strongly denied the allegations, stating he “will duly defend himself.” The statement added, “The complaint by SBI relates to matters over 10 years old. At that time, Ambani was a non-executive director with no involvement in day-to-day management. SBI has already withdrawn proceedings against five other non-executive directors, yet Ambani has been singled out.”
RCom’s filing also revealed that its subsidiary, Reliance Telecom Ltd (RTL), received a similar letter from Bank of India, classifying the loan accounts of the company, Grace Thomas (erstwhile director of RTL and current director of RCom), and certain others as ‘Fraud’.
Under banking regulations, an account declared fraudulent must be referred to enforcement agencies for criminal action, and the borrower is barred from obtaining fresh finance from banks or regulated institutions for five years.
Bank of India noted that RCom’s account had turned a non-performing asset (NPA) on June 30, 2017, with an outstanding balance of ₹724.78 crore. “The bank has repeatedly followed up with borrowers and guarantors for repayment, but they have failed to meet their obligations,” the letter said.
In April, RCom had disclosed total debt of ₹40,400 crore as of March. Due to unpaid loans, the company entered insolvency proceedings and is now managed under a Committee of Creditors, led by SBI and supervised by a Resolution Professional.
