India’s largest lender has officially flagged the telecom firm and its high-profile promoter for alleged fraud, sparking a legal escalation years after RCom’s collapse.
State Bank of India has classified Reliance Communications and its promoter Anil D. Ambani as “fraudulent entities,” a move that could pave the way for criminal proceedings. The declaration, made on June 13 under RBI rules, was revealed in Parliament on Monday and marks one of the most high-profile fraud taggings in recent years.
A complaint with the Central Bureau of Investigation (CBI) is now in the pipeline. The bank’s exposure to RCom—once a marquee name in Indian telecom—is over ₹3,000 crore.
A Long Road Ends in Fraud Classification
This isn’t just about a bad loan. It’s about a broken trust that dates back nearly a decade.
The classification of Reliance Communications and Anil Ambani as “fraud” was done per RBI’s Master Directions on fraud risk management, and SBI’s own board-approved policy. The fraud label was formally communicated to the RBI on June 24, 11 days after the internal classification.
And now, SBI is preparing to knock on the CBI’s door.
The revelation came in a written response by Minister of State for Finance Pankaj Chaudhary in Lok Sabha. He said the process of lodging a formal complaint with the CBI is underway. Meanwhile, the Resolution Professional managing RCom’s insolvency process had also informed the Bombay Stock Exchange about the fraud designation on July 1, as part of regulatory compliance.
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For Anil Ambani, this is a significant blow. Once among the wealthiest Indians, the younger Ambani now finds himself entangled in a potentially criminal investigation.
Credit Exposure Runs Deep
SBI’s total exposure to RCom is no pocket change.
The fund-based loan stands at ₹2,227.64 crore, while another ₹786.52 crore is tied up in non-fund based bank guarantees. This doesn’t include accrued interest and various expenses that have accumulated since August 26, 2016—the date Ambani’s telecom empire began to crumble under a mountain of debt and spectrum dues.
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These numbers might even rise once forensic audits and enforcement action gather pace.
Let’s break down the exposure:
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Fund-Based Principal (Loan): ₹2,227.64 crore
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Bank Guarantees (Non-Fund-Based): ₹786.52 crore
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Accrued interest/expenses since 2016: Additional liabilities
Together, SBI is looking at well over ₹3,000 crore in total exposure.
RCom’s Painfully Slow Bankruptcy Drags On
RCom is not a fresh case. The company has been under the Corporate Insolvency Resolution Process (CIRP) since 2019, under the provisions of the Insolvency and Bankruptcy Code (IBC).
The Resolution Plan? That was approved by the Committee of Creditors over four years ago—on March 6, 2020. It has been stuck in a legal black hole ever since, waiting for a nod from the National Company Law Tribunal (NCLT), Mumbai.
What makes things even murkier is the fact that SBI’s fraud classification has come while the resolution process is technically still alive. This could complicate how recoveries are structured, or even derail parts of the creditor-approved plan.
What Does Fraud Tagging Really Mean?
It’s not just semantics.
When a borrower is tagged as “fraudulent,” it signals the bank’s belief that there was willful wrongdoing or misrepresentation involved. This doesn’t always mean criminal intent, but it often serves as a trigger for further action—both legal and regulatory.
Here’s what typically follows such a classification:
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Immediate notification to RBI and stock exchanges (if applicable)
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Blacklisting of the borrower for future loans
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Initiation of criminal proceedings via agencies like the CBI
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Potential attachment of assets through enforcement directorate (ED)
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So far, there’s no official word from Anil Ambani or Reliance Group in response to SBI’s allegations.
Anil Ambani: From Boardrooms to Courtrooms
Anil Ambani’s fall from grace has been dramatic—and relentless.
Once seen as a counterweight to his brother Mukesh Ambani, Anil led a sprawling empire that spanned telecom, infrastructure, finance, and power. That empire has steadily disintegrated under the weight of mounting liabilities, strategic missteps, and failed bets.
Reliance Communications, once India’s second-largest telecom company, was the biggest casualty. By the time it filed for bankruptcy in 2019, the company owed nearly ₹45,000 crore to banks and vendors.
Since then, Anil Ambani has faced:
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Court scrutiny in multiple jurisdictions, including a 2020 UK court declaration where he claimed to be “bankrupt” and unable to repay a Chinese loan.
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Enforcement Directorate investigations linked to other group firms.
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Loss of key licenses, especially in telecom, due to unpaid dues and default.
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Now, with the CBI complaint looming, the troubles are far from over.
What Happens Next?
Legal experts say this could open the door to not just criminal charges, but potential asset seizures and broader investigations across the Reliance ADA Group.
The CBI will likely start with a preliminary inquiry before registering a formal FIR. If fraud is established, both RCom and Anil Ambani could face prosecution under multiple sections of the Indian Penal Code, as well as the Prevention of Corruption Act and PMLA.
The RBI, meanwhile, may push for a wider audit of past disbursements to RCom and its affiliates.
For SBI, this move sends a clear message: even politically sensitive defaulters are no longer immune from scrutiny. Especially with bad loans still hovering around ₹10 lakh crore across the Indian banking system, there’s little appetite for kid gloves anymore.
