SBI to Move CBI After Classifying Anil Ambani and Reliance Communications as Fraud

SBI Slaps ‘Fraud’ Label on Anil Ambani, Prepares for Criminal Complaint

The420.in
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In a written statement to Parliament on July 22, 2025, Minister of State for Finance Pankaj Chaudhary confirmed that the State Bank of India (SBI) has classified Reliance Communications (RCom) and its promoter Anil D. Ambani as “fraud” as of June 13, 2025. This move follows the Reserve Bank of India’s (RBI) updated guidelines on fraud risk management and SBI’s internal policy framework.

This is not the first time Ambani and RCom were tagged as fraud accounts. SBI had made a similar classification in November 2020 and filed a complaint with the CBI on January 5, 2021. That complaint was blocked by a Delhi High Court status quo order the very next day.

The case gained momentum after the Supreme Court’s March 2023 ruling in the Rajesh Agarwal case, which required lenders to give borrowers a fair chance to respond before labeling their accounts as fraudulent. As a result, SBI had withdrawn the earlier fraud classification on September 2, 2023.

However, the bank restarted the process in July 2024, this time following all procedural safeguards under the RBI’s revised framework. After completion of due process, the classification was reinstated in June 2025. The bank then informed RBI on June 24, 2025, and is now preparing to file a fresh complaint with the CBI.

Over ₹3,000 Crore at Risk for SBI

SBI’s exposure to Reliance Communications is substantial. The bank is owed ₹2,227.64 crore in fund-based loans, along with interest and charges dating back to August 26, 2016. Additionally, the bank has a non-fund based exposure of ₹786.52 crore through bank guarantees—bringing the total to over ₹3,000 crore.

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The development has been disclosed publicly by the Resolution Professional of RCom, who notified the Bombay Stock Exchange on July 1, 2025, as part of the company’s regulatory obligations.

Insolvency Proceedings Still Ongoing

Reliance Communications is still under insolvency proceedings initiated in March 2020 under the Insolvency and Bankruptcy Code, 2016. Its resolution plan has been approved by its Committee of Creditors and submitted to the National Company Law Tribunal (NCLT) in Mumbai. A final decision from the tribunal is still pending.

Meanwhile, SBI has also initiated personal insolvency proceedings against Anil Ambani, which are being heard separately by the NCLT. The outcome of these cases may influence the final resolution, but the fraud classification signals SBI’s intention to pursue criminal proceedings independently.

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