Last yr, state-run Canara Bank additionally tagged the RCom mortgage account as ‘fraud,’ a choice that the Bombay excessive courtroom stayed.
Anil Ambani’s RCom mortgage account has been categorized as ‘fraud’.(Reuters File)
RCom filed a securities submitting on Tuesday, disclosing the transfer of India’s greatest lender. Last yr, state-run Canara Bank additionally tagged the RCom mortgage account as ‘fraud’, a choice that the Bombay excessive courtroom stayed.
Reliance Communications is a part of the group led by 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 complete debt of ₹40,400 crore.
What does SBI tagging Anil Ambani’s Reliance Communications mortgage account as ‘fraud’ imply?
Under Indian banking legal guidelines, as soon as an account is reported as fraudulent, it’s referred to enforcement businesses for prison motion, and the borrower is barred from securing any extra finance from banks and different regulated monetary establishments for an preliminary interval of 5 years.
The SBI categorized the Reliance Communications mortgage account as ‘fraud’ after discovering alleged diversion of mortgage funds in transactions relationship again to 2026.
The SBI stated it gave Anil Ambani and the corporate a number of possibilities previously two years to reply to the allegations of fraud in loans taken out in 2016 from Indian banks that had been subsequently categorized as dangerous or non-performing, however discovered their replies “insufficient”.
SBI’s letter additionally stated it will report Anil Ambani to the Reserve Bank of India, in compliance with Indian banking rules. Ambani was a director of Reliance Communications, which is at present present process insolvency proceedings.
In the submitting, Reliance Communications stated that the insolvency proceedings shield it from orders by another authority or courtroom of legislation.
“Legal advice is being sought on the way forward with respect to this development,” the corporate stated.
Anil Ambani’s counsel responds to SBI’s letter
Anil Ambani’s counsel, in an announcement, stated that SBI’s order is in direct contravention of judgments of the Supreme Court, Bombay excessive courtroom, and RBI pointers.
“SBI’s order is in direct contravention of assorted judgments of the Hon’ble Supreme Court and the Hon’ble Bombay High Court, in addition to RBI pointers,” the assertion stated.
The counsel added that regardless of repeated requests, SBI didn’t reply to Ambani’s communications concerning the present trigger discover (SCN) for practically a yr, nor offered the knowledge behind their resolution to permit him to reply to the SCN.
“SBI has not even responded to Mr. Ambani’s communication concerning the invalidity of the Show Cause Notice (SCN) for nearly a yr, and has not even offered the knowledge forming the idea of their resolution regardless of being repeatedly requested by Mr. Ambani, to allow him to reply to the SCN,” the assertion reads.
The counsel stated, “SBI has additionally not allowed Mr. Ambani a possibility of private listening to to make submissions towards its allegations.”
“SBI has withdrawn the present trigger discover to different non-executive and impartial administrators of RCOM. Mr. Ambani was additionally a non-executive director and never concerned within the day-to-day affairs of RCOM, and has been wrongly so categorized,” the assertion added.
