From Telecom Titan To Fraud Tag: How Anil Ambani’s RCom Went To Bankruptcy And Fraud Cases From SBI, BoI, And BoB

RCom Loan Case: Reliance Communications Ltd. (RCom) and its former director Anil Ambani faced a fresh blow on September 5, 2025. Bank of Baroda declared its loan accounts as “fraud.”

The bank clarified in an exchange filing that these loans were taken before RCom entered insolvency in 2019.

The move follows similar actions by the State Bank of India (SBI) in June 2025 and the Bank of India (BoI) in August 2025, both of which had also classified RCom’s loans as fraudulent.

What Did RCom And Anil Ambani Said?

RCom, however, has pushed back. It argued that such loans, since they were taken before the corporate insolvency resolution process (CIRP) began, must be resolved through the resolution plan or liquidation.

The company pointed out that under the Insolvency and Bankruptcy Code (IBC), it is legally protected from fresh suits or proceedings while under CIRP.

Anil Ambani, who resigned as director in 2019, has strongly denied any wrongdoing. Through his spokesperson, he clarified that he was only a non-executive director and had no role in day-to-day operations or decision-making.

He also criticised lenders for initiating action after more than 10 years, saying he was being selectively targeted.

The case comes alongside an ongoing Enforcement Directorate (ED) investigation into alleged loan fraud across Anil Ambani’s group entities, with the amount estimated to be nearly Rs 17,000 crore.

As these investigations intensify, the story of RCom has turned into one of the most dramatic corporate downfalls in India.

But how did a telecom company that once held over 20% of India’s market share collapse into insolvency and fraud allegations?

Also Read: Bank of Baroda Declares RCom And Anil Ambani Loan Accounts As ‘Fraud’

RCom Story: A Family Settlement and a Big Opportunity

The story begins in 2005, when a family settlement between the Ambani brothers gave Anil control of the telecom business. At the time, RCom had a market share of more than 20%.

Though most users were on CDMA, a technology falling behind globally compared to GSM, Anil Ambani acted quickly. He shifted focus to GSM within a year and attracted users with aggressive pricing, nearly 60% cheaper than rivals.

His ambitions were bold. He set a target to reach 100 million subscribers. This strategy paid off in the short run, positioning RCom as a major telecom contender.

Betting Big on 3G

Riding on early success, Anil Ambani doubled down on growth. In 2010, RCom spent Rs 8,500 crore to acquire 3G spectrum in key markets, including the costly Delhi and Mumbai circles.

For a while, the gamble seemed to be working. By December 2010, RCom had become India’s second-largest telecom operator, boasting 125 million subscribers—four times its base from five years earlier.

Anil Ambani appeared to have transformed his family settlement gift into a crown jewel of the telecom sector.

Debt Piles Up and Missteps Multiply

But the glitter came with a heavy price tag. To fund spectrum purchases and expansion, RCom borrowed aggressively. Its debt ballooned from Rs 25,000 crore in 2010 to around Rs 43,000 crore just a few years later.

Nearly half of this debt went into buying spectrum. The company also had to spend an additional Rs 6,600 crore to liberalise 850 MHz spectrum for 4G use.

While rivals like Bharti Airtel managed to keep investing in their networks by selling assets at the right time, RCom delayed crucial moves.

For instance, it once had offers of over Rs 30,000 crore for its tower and fibre assets, but when it eventually sold them, they fetched only Rs 8,500 crore.

Similarly, a proposed deal with Sun TV for a stake in its direct-to-home business collapsed, leaving RCom without much-needed cash.

The rising debt also reduced RCom’s ability to invest in 4G technology, leaving it unprepared for the next big telecom wave.

The Jio Effect

The turning point came in 2016 with the launch of Reliance Jio by Anil’s brother, Mukesh Ambani.

Jio’s strategy of free voice calls and ultra-cheap 4G data shook the industry. Customers flocked to Jio, and RCom’s market share collapsed, from 9.5% in mid-2016 to just about 5% in late 2017.

Already weakened by debt and shrinking revenues, RCom could not withstand Jio’s disruption. By 2017, it shut down mobile services and scrambled to sell assets to pay its debts. A proposed merger with Aircel fell apart, worsening the crisis.

From Insolvency to Fraud Tag

By 2019, RCom entered insolvency under the National Company Law Tribunal (NCLT). A resolution plan was approved by its creditors but is still awaiting NCLT clearance. In the meantime, RCom’s case has drawn increasing scrutiny.

Now, with three major banks, SBI, BoI, and Bank of Baroda, classifying its loans as “fraud,” RCom and Anil Ambani face not just insolvency but also reputational and legal battles. The ED and CBI are probing allegations of loan fraud, fund diversion, and violations of loan terms.

Anil Ambani continues to deny any role in wrongdoing, maintaining that he was not involved in RCom’s day-to-day affairs and has been unfairly targeted.