Finance Desk – In a major blow to businessman Anil D. Ambani, the State Bank of India (SBI) has officially declared the loan account of Reliance Communications Ltd. (RCom) as fraudulent. SBI has also reported Mr. Ambani, the former director of RCom, to the Reserve Bank of India (RBI) for further action.
This step was taken after a forensic audit and months of back-and-forth involving show-cause notices and replies between the bank and the company.
SBI informed RCom through a letter that its Fraud Identification Committee (FIC) had found serious irregularities, such as:
- Diversion of funds
- Violation of loan terms
SBI has now asked the RBI to take action as per its rules. The bank’s action follows the RBI’s Master Direction on Frauds, which helps banks deal with misuse of the banking system.
What Happens Next?
- Legal action against Anil Ambani is expected.
- The case could go to the CBI (Central Bureau of Investigation) for deeper investigation.
- Civil and criminal proceedings may follow.
Even though RCom is protected under Section 32A of the Insolvency and Bankruptcy Code (IBC) and cannot be punished, its promoter (Anil Ambani) can still face legal consequences.
What the Audit Found
SBI’s FIC report dated June 13, 2025, pointed out that:
- RCom and its companies diverted bank funds
- Funds were routed through other related entities
- Money was parked in mutual funds and fixed deposits
- There were non-transparent transactions
Anil Ambani’s lawyer, Tarini Khurana, has strongly opposed SBI’s decision, calling it:
- Shocking
- Unfair
- Against natural justice
She said SBI:
- Did not respond to Mr. Ambani’s objections
- Did not share full details of the allegations
- Did not allow a personal hearing
Had withdrawn notices for other non-executive directors, but wrongly singled out Mr. Ambani, who was also a non-executive director and not involved in daily operations
Mr. Ambani is now pursuing legal action based on advice from his legal team.
