RCom loan case: Anil Ambani responds to fraud allegations amid bank classifications and CBI action

Anil Ambani, the founder chairman of Reliance Group, has strongly denied all allegations following the Bank of India’s decision to classify Reliance Communications’ (RCom) loan account as fraudulent, naming him in connection with alleged fund diversion dating back to 2016.

In a detailed statement on Sunday, August 24, his spokesperson emphasised that Ambani served only as a non-executive director at the time and had no involvement in the company’s day-to-day operations. He resigned from the board in 2019.

The spokesperson criticised Bank of India’s actions as being in violation of principles of natural justice. While a show-cause notice was issued to Ambani, the bank allegedly failed to provide supporting documents or offer a personal hearing.

The statement further noted that although notices were initially sent to 13 directors and key managerial personnel, the bank withdrew proceedings against all others—except Ambani. These actions, the spokesperson claimed, contradict RBI regulations issued in July 2024 and established legal precedents.

Bank of India’s classification and loan details

Bank of India had extended a ₹700 crore loan to RCom in August 2016 for operational and capital expenditure. However, half of the disbursed amount was reportedly invested in a fixed deposit, violating the terms of the sanction letter.

The bank declared the account as non-performing in June 2017, with an outstanding of ₹724.78 crore. On August 8, 2025, it formally classified the loan accounts of RCom, Anil Ambani, and others as ‘fraud’, triggering mandatory enforcement actions under banking laws.

SBI’s earlier classification and CBI raids

Prior to this, in June 2025, the State Bank of India (SBI) had also classified RCom’s account as fraudulent, citing misappropriation of funds and violation of loan terms. Following SBI’s complaint, the Central Bureau of Investigation (CBI) conducted raids on premises linked to Reliance Communications and Ambani’s residence. The CBI registered a case based on SBI’s claim of a ₹2,929 crore loss due to alleged fund diversion.

In response to the CBI action, Ambani reiterated his denial of all charges, stating that the SBI complaint pertains to events over a decade old. He emphasised that SBI itself had withdrawn proceedings against five other non-executive directors, yet he was being “selectively singled out.”

Canara Bank and Bombay High Court stay

In November 2024, Canara Bank also classified RCom’s account as fraudulent. However, in February 2025, the Bombay High Court stayed Canara Bank’s move, citing procedural lapses—specifically, the lack of a proper hearing for the borrower as mandated under RBI guidelines.

Legal status and ongoing proceedings

Reliance Communications, burdened with ₹40,400 crore in debt as of March, is currently undergoing insolvency proceedings. The company is managed under a Committee of Creditors led by SBI and overseen by a resolution professional. The matter remains sub judice, pending before the NCLT and other judicial forums, including the Supreme Court, for the past six years.

Ambani has stated that he will pursue all legal remedies available to him.

(Edited by : Priyanka Deshpande)