Major Jolt For Anil Ambani! After SBI & Bank of India, Bank of Baroda Declares RCom Loans As Fraud

Anil Ambani Bank of Baroda Case: In a significant development, Bank of Baroda has declared the loan accounts of Reliance Communications Ltd. (RCom) and its former director, Anil Ambani, as “fraud.”

The bank has informed the stock exchange that this classification relates to loans taken before RCom entered the corporate insolvency resolution process (CIRP). The move adds to the challenges already surrounding the troubled telecom company and its former promoter.

RCom’s Position Under CIRP

RCom has been undergoing insolvency proceedings since June 2019 under the Insolvency and Bankruptcy Code (IBC), 2016.

The company clarified that the loans in question pertain to the pre-CIRP period and should be dealt with through the resolution plan or liquidation process.

Currently, the company is under the management of resolution professional Anish Niranjan Nanavaty. RCom also highlighted that during the CIRP, it enjoys legal protection against any fresh suits or proceedings.

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Anil Ambani’s Response

Anil Ambani, who resigned as RCom’s director in 2019, has distanced himself from the allegations. Through his spokesperson, he clarified that he served only as a Non-Executive Director since the company’s inception in 2006 and was not involved in daily operations or decision-making.

The spokesperson pointed out that the matter dates back to 2013 and criticised lenders for initiating selective action after more than 10 years. Ambani has categorically denied all charges and stated that he will pursue legal remedies as per advice.

Ongoing Investigations and Wider Impact

This development comes amid ongoing investigations by the Enforcement Directorate (ED) into alleged loan fraud across Anil Ambani group entities. The ED has sought details from 12–13 banks regarding loans given to RCom, Reliance Housing Finance, and Reliance Commercial Finance.

Reports suggest that the estimated fraud amount could be close to Rs 17,000 crore. Earlier, the State Bank of India (SBI) had declared RCom’s loan accounts as fraud in June, followed by Bank of India in August, which also named Anil Ambani in its report.

What Lies Ahead

A resolution plan for RCom has already been approved by its committee of creditors and is currently awaiting the green signal from the National Company Law Tribunal (NCLT).

Meanwhile, Bank of Baroda has confirmed that it will report the fraud classification to regulatory authorities, including the Reserve Bank of India (RBI), in line with its guidelines on fraud risk management.