State Bank of India has branded Reliance Communications and its promoter Anil Ambani as ‘fraud’, initiating action to file a complaint with the CBI following RBI’s regulatory framework.
MUMBAI (India CSR): In a significant move, the State Bank of India (SBI) has officially labeled Reliance Communications (RCom) and its promoter Anil D. Ambani as ‘fraud’, with a formal complaint being prepared for the Central Bureau of Investigation (CBI). This was informed to Parliament by Minister of State for Finance, Pankaj Chaudhary, in a written response. The classification was made on June 13, 2025, under RBI’s Master Directions on Fraud Risk Management and SBI’s internal fraud policies.
Fraud Process Under RBI Norms and CBI Action
The bank reported the classification to the Reserve Bank of India on June 24, 2025, and subsequently began preparing its complaint for submission to the CBI. On July 1, 2025, RCom’s Resolution Professional also disclosed the fraud status to the Bombay Stock Exchange. SBI’s financial exposure to RCom includes a fund-based principal outstanding of Rs. 2,227.64 crore plus interest since August 2016, and a non-fund-based bank guarantee of Rs. 786.52 crore.
Legal Proceedings and Insolvency Status
RCom is currently undergoing a Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. A resolution plan was approved by the Committee of Creditors and filed before the NCLT, Mumbai, on March 6, 2020, but final approval is still awaited. Meanwhile, SBI has also initiated a separate personal insolvency proceeding against Anil Ambani, which is pending before the NCLT.
Past Legal Challenges and Supreme Court Judgment
Interestingly, this is not the first time SBI classified the account as fraud. A similar classification was made in November 2020, followed by a CBI complaint in January 2021. However, the Delhi High Court’s ‘status quo’ order on January 6, 2021, halted the process. Later, a landmark Supreme Court ruling in March 2023 required banks to give borrowers a chance to respond before labeling them fraudulent. Based on this, SBI reversed the fraud tag on September 2, 2023, and after following due process afresh, reclassified it again in July 2024.
Wider Implications and Government’s Position
This high-profile case brings attention to regulatory tightening in banking operations against wilful defaults and fraudulent conduct. It also reflects on the broader banking system’s push for accountability among big borrowers. Meanwhile, in an unrelated development in the same Parliament session, the government clarified there is no plan to waive farm loans but detailed ongoing credit relief measures for farmers. Furthermore, updates were also shared about the Bima Sakhi initiative under LIC, reflecting the government’s continued focus on women’s financial empowerment.
(India CSR)
