Trouble continues to mount for Reliance Group chairman Anil Ambani as Bank of Baroda has officially declared him and Reliance Communications (RCom) fraudsters, making it the third major lender to do so after the State Bank of India (SBI) and Bank of India (BOI).
According to RCom’s disclosure, the company received a notice from Bank of Baroda on September 2. The bank had extended credit lines worth ₹2,462.50 crore, out of which ₹1,656.07 crore remains unpaid. The account has been classified as a non-performing asset (NPA) since June 2017.
Algoritha: The Most Trusted Name in BFSI Investigations and DFIR Services
Loan Default and Investigations
The Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are already probing multiple cases involving Ambani’s companies. In July, ED raided more than 35 locations linked to Reliance Group entities, while in August, CBI conducted searches at Ambani’s residence in Mumbai in connection with a ₹2,929 crore bank fraud case tied to SBI.
Reliance Group’s Response
RCom, which has been under insolvency proceedings since 2019 with total debts exceeding ₹40,000 crore, has termed the allegations “baseless.” A company spokesperson clarified that the case relates to a 12-year-old matter and stressed that Anil Ambani served only as a non-executive director between 2006 and 2019, with no role in daily operations.
Reliance Power, another group company, also informed exchanges that Bank of Baroda’s move would not affect its trade operations or financial performance. It further noted that Ambani has not been on its board for over three years.
Legal and Financial Fallout
Under banking laws, once an account is declared fraudulent, the case is referred to investigative agencies, and the borrower is barred from accessing fresh funds for five years. With Bank of Baroda joining SBI and BOI, pressure on Ambani’s corporate empire has intensified.
Meanwhile, personal bankruptcy proceedings against Anil Ambani are also pending before the National Company Law Tribunal (NCLT) in Mumbai.
For Ambani, who once led one of India’s most ambitious telecom ventures, the latest action is another blow to a business empire now deeply entangled in debt, litigation, and regulatory scrutiny.