India’s Central Bureau of Investigation (CBI) has booked industrialist Anil Ambani and his company Reliance Communications (RCOM) in connection with an alleged ₹2,929 crore bank fraud. The move intensifies scrutiny of Ambani, already under the Enforcement Directorate’s radar, and raises questions about corporate governance and accountability in India’s banking sector.
CBI Registers Case, Conducts Searches
The CBI announced on Saturday that it had registered a criminal case against Reliance Communications Ltd, its director Anil D Ambani, and unknown public servants and others, based on allegations of defrauding State Bank of India (SBI). Searches were carried out at Ambani’s residence and RCOM premises after a Mumbai court issued warrants.
The agency said the case stems from a complaint filed on August 18 by Jyoti Kumar, Deputy General Manager of SBI’s Mumbai branch. Kumar alleged that a forensic audit, submitted in October 2020, exposed irregularities in credit facilities extended between 2013 and 2017.
According to the CBI, the accused conspired to secure loans through misrepresentation and later misappropriated funds by violating sanction terms. The FIR lists alleged practices including diversion of loan funds, inter-company transactions, sales invoice financing irregularities, fictitious entries, and write-offs involving group entities like Reliance Infratel Ltd and Netizen Engineering Pvt Ltd.
“These transactions appear to be an attempt of diversion of funds by manipulation of books of accounts through fictitious entries,” the FIR stated, adding that the alleged conduct amounted to criminal misappropriation and breach of trust.
Ambani Denies Allegations, Calls Move “Selective”
A spokesperson for Anil Ambani said the industrialist had been “selectively singled out,” stressing that he “strongly denies all allegations and charges.” The spokesperson noted that the SBI complaint relates to events over a decade old, during which Ambani served as a non-executive director with “no involvement in day-to-day management.”
“The search at Mr Ambani’s residence concluded early this afternoon. At the relevant time, he was a Non-Executive Director of the company, with no operational role,” the spokesperson said.
They further pointed out that SBI had already withdrawn proceedings against five other non-executive directors, yet Ambani continued to face scrutiny. Reliance Communications, the spokesperson added, has been under a resolution process led by SBI’s Committee of Creditors and overseen by a court-appointed professional for the past six years.
A Broader Web of Financial Scrutiny
The CBI’s case follows closely on the heels of the Enforcement Directorate’s (ED) action against Ambani, in which he was questioned over an alleged ₹20,000 crore loan scam. The Ambani group at the time denied wrongdoing, emphasizing its “commitment to compliance, transparency, and regulatory processes.”
The developments highlight growing regulatory pressure on corporate borrowers as banks and investigative agencies revisit large defaults and failed companies from the past decade. Reliance Communications, once a flagship telecom firm of the Reliance ADA Group, entered insolvency in 2019 under heavy debt.
The matter is currently sub judice before the National Company Law Tribunal (NCLT), the Supreme Court, and other judicial forums. Ambani has challenged SBI’s actions in these proceedings, signaling what could be a protracted legal battle.