CBI Case Against Anil Ambani? SBI Declares RCom Loan 'Fraud', MoS Finance Tells Lok Sabha—What Is This Case All About?

The State Bank of India (SBI) has officially classified the loan account of Reliance Communications (RCom) and its former director Anil D. Ambani as “fraud” and is in the process of filing a complaint with the Central Bureau of Investigation (CBI), Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha on Monday.

The move follows a detailed investigation into the misuse and diversion of loans worth thousands of crores, with SBI accusing Ambani of breaching trust and misappropriating funds.

SBI Flags Fraud After Loan Misuse Found

On June 13, 2025, SBI flagged RCom and Anil Ambani as fraudulent entities under RBI’s Master Directions on Fraud Risk Management. This classification came after the bank concluded that the explanations provided by Ambani and the company in response to its show cause notice were unsatisfactory. SBI found clear signs of non-adherence to loan terms and significant irregularities in the account’s conduct.

By June 24, 2025, SBI reported the fraud to the Reserve Bank of India (RBI) and began proceedings to lodge a formal complaint with the CBI.

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How Much Did SBI Lose?

SBI's direct exposure to RCom includes a fund-based loan of Rs 2,227.64 crore, plus non-fund-based guarantees worth Rs 786.52 crore. However, RCom and its subsidiaries had borrowed a total of Rs 31,580 crore from various banks.

The Modus Operandi

An internal probe by SBI has uncovered a complex web of financial mismanagement within several Reliance group companies. The investigation found that Rs 13,667 crore (44%) of funds were used to repay old loans, while Rs 12,692 crore (41%) were diverted to connected companies within the group.

A Rs 250 crore loan from Dena Bank, intended for paying statutory dues, was instead transferred to another group firm as an inter-corporate deposit (ICD).

Similarly, funds from IIFCL, meant for capital expenditure, were misused to repay loans of group companies by routing the money through Reliance Communications Infrastructure Ltd (RCIL).

Furthermore, RCom was involved in massive ICD transactions totalling Rs 41,863 crore, but only Rs 28,422 crore of those could be tracked, leaving a large portion unaccounted for.

Moreover, the company was found cycling funds using a Rs 100 crore intraday limit, moving money rapidly among group firms like Reliance Webstore, RTL, and RCIL — multiple times in a single day. The intent, as flagged by SBI, appeared to be book manipulation, not normal business operations.

Repeated Fraud Classifications

Interestingly, this isn’t the first time Anil Ambani and RCom have faced fraud charges from SBI. Back in November 2020, SBI classified both the account and Ambani as fraud and filed a complaint with the CBI. However, the Delhi High Court’s ‘status quo’ order in January 2021 forced the bank to reverse that decision.

Later, a Supreme Court ruling in March 2023 made it mandatory for banks to give borrowers a chance to be heard before labelling them as fraudsters. Following due process, SBI again declared RCom and Ambani as fraud in June 2025, adhering to the updated RBI rules.

What It Means For Anil Ambani

RCom has been under the Corporate Insolvency Resolution Process since 2019, and now legal troubles are growing for its promoter, Anil Ambani. SBI has started personal insolvency proceedings against him, and the case is currently with the National Company Law Tribunal (NCLT) in Mumbai. If a company or its promoter is officially declared fraudulent, they cannot take loans from banks or government-backed financial institutions for at least five years.

This also puts their ongoing resolution plans under the Insolvency and Bankruptcy Code (IBC) at risk of being delayed or rejected. In addition, if the CBI begins a criminal investigation and finds wrongdoing, Anil Ambani could face serious legal action, including possible arrest.