SBI Labels Anil Ambani-Led RCom Loan ‘Fraud’; Company Says No Immediate Impact Under Insolvency Process

Reliance Communications Limited (RCOM) has officially disclosed that the State Bank of India (SBI) has decided to classify its loan account as “fraud”. This was conveyed through a letter dated June 23, 2025, which the company received on June 30, 2025.

In the disclosure to stock exchanges, RCOM stated, “SBI has decided to report the loan account of the company as ‘fraud’ and to report the name of Anil Dhirajlal Ambani (erstwhile director of the company) to the RBI, as per the extant RBI guidelines.”

What Did Reliance Communications Said?

This disclosure was made under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, which mandates that material events be promptly communicated to shareholders.

The company clarified that this classification will not have any immediate impact, explaining, “The company is undergoing a corporate insolvency resolution process (‘CIRP’) under the Insolvency and Bankruptcy Code, 2016 (‘Code’)...the credit facilities/loans referred to...pertain to the period before the CIRP of the company.”

It further noted that Section 32A of the Insolvency Code protects it from liability for offences committed before the insolvency process started: “Upon the approval of the resolution plan in respect of the company by the NCLT, the company shall be deemed to have immunity against any liability for any purported offences committed by the company before the commencement of the CIRP.”

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Additionally, the company stated that “The above classification is not expected to have any impact on the company.”

RCOM is currently awaiting the National Company Law Tribunal’s (NCLT) approval of a resolution plan that its committee of creditors has already cleared. The company concluded that legal advice is being sought regarding the next steps following SBI’s action.

For transparency, the company has attached SBI’s letter and reiterated that the State Bank of India will proceed to report the account as fraudulent to the Reserve Bank of India (RBI).

Reliance Communications Company Profile

Reliance Communications Limited (RCom) is an Indian telecom company founded in 2004 as part of the Reliance Group, started by Dhirubhai Ambani. Led by Anil Ambani after the Reliance Group split, RCom offered mobile, broadband, enterprise services, and undersea cable connectivity.

In the late 2010s, it struggled with heavy debt, rising competition—especially from Reliance Jio—and a shrinking market share.

In 2019, the company entered the corporate insolvency resolution process under the Insolvency and Bankruptcy Code.

Since then, its board has been suspended, and a resolution professional, Anish Niranjan Nanavaty, has been managing the business.

Currently, RCom remains under insolvency proceedings, and many of its licences have expired or been surrendered while its assets are being considered for sale or restructuring to repay creditors.