SBI classifies Anil Ambani-led Reliance Communications’ mortgage account as fraud. What does it imply?
Last yr, state-run Canara Bank additionally tagged the RCom mortgage account as ‘fraud,’ a call that the Bombay excessive court docket stayed.
Anil Ambani’s RCom mortgage account has been labeled 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 call that the Bombay excessive court docket stayed.
Reliance Communications is a part of the group led by Anil Ambani, the brother of India’s richest particular person, 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 legal 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 labeled the Reliance Communications mortgage account as ‘fraud’ after discovering alleged diversion of mortgage funds in transactions courting again to 2026.
The SBI mentioned it gave Anil Ambani and the corporate a number of possibilities previously two years to answer the allegations of fraud in loans taken out in 2016 from Indian banks that had been subsequently labeled as unhealthy or non-performing, however discovered their replies “insufficient”.
SBI’s letter additionally mentioned it might report Anil Ambani to the Reserve Bank of India, in compliance with Indian banking laws. Ambani was a director of Reliance Communications, which is at present present process insolvency proceedings.
In the submitting, Reliance Communications mentioned that the insolvency proceedings shield it from orders by another authority or court docket of legislation.
“Legal advice is being sought on the way forward with respect to this development,” the corporate mentioned.
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