In a major development that could have serious implications for one of India’s most well-known industrialists, the State Bank of India (SBI) has officially declared the loan account of Reliance Communications, a company owned by Anil Ambani’s Reliance Group, as fraudulent. Alongside this declaration, SBI has also decided to report Anil Ambani’s name to the Reserve Bank of India (RBI).
Reliance Communications has been under financial distress for a long time, and this recent move by SBI marks another significant blow to the already beleaguered company. The issue dates back to August 2016, when Reliance Communications secured a large loan from SBI. According to a report by Reuters, SBI issued a letter to the company on June 23, 2025, stating that its loan account is being categorized as fraudulent. This letter was received by the company on June 30, 2025, and in compliance with market regulations, Reliance Communications confirmed the receipt.
Importantly, the bank did not just send the notice to the company but also addressed it to its former director, Anil Ambani. SBI has clearly stated its intention to report both Reliance Communications and Anil Ambani to the RBI’s list of frauds.
This is not a sudden decision. SBI had issued several notices to Reliance Communications in the past, including show-cause notices in December 2023, March 2024, and September 2024. These notices asked the company to explain why the loan terms were violated. According to SBI, Reliance Communications failed to provide satisfactory answers to these queries. The bank has alleged misuse of loan funds and irregularities in the company’s account.
SBI’s Fraud Identification Committee conducted a thorough investigation and concluded that there is enough evidence to categorize the loan as fraud. As per RBI norms, the next step will be to officially submit the names of the company and its former director, Anil Ambani, to the central bank.
It is worth noting that this is not the first time that a bank has attempted to label Reliance Communications' loan account as fraudulent. In November 2024, Canara Bank had also tried to do the same. However, in February 2025, the Bombay High Court halted the move, stating that Canara Bank failed to provide the company with a proper hearing, as mandated by RBI rules.
The outcome of SBI's current action remains to be seen. Since 2019, Reliance Communications has been undergoing Corporate Insolvency Resolution Process (CIRP). The company owes a massive debt to multiple banks. Reports suggest that a total of 53 banks have a combined exposure of approximately ₹47,251 crore to Reliance Communications.
Earlier, Anil Ambani had declared himself bankrupt, and the National Company Law Tribunal (NCLT) approved a resolution plan that aimed to settle the entire case for just ₹455 crore. This accounted for only about 0.96 percent of the total outstanding debt. The recent action by SBI, however, has once again intensified the legal and financial troubles for Anil Ambani and his company.
The big question now is: Will Anil Ambani be able to fight and win yet another legal battle? Or will this latest development further complicate his financial woes?
Disclaimer:
The information provided in this blog is based on publicly available reports and news sources as of July 2025. This article is intended for informational purposes only and does not constitute legal, financial, or investment advice. Readers are advised to consult appropriate professionals for specific guidance. The blog does not claim responsibility for the accuracy or completeness of the information presented.
