- By Shreyansh Mangla
- Fri, 05 Sep 2025 07:45 PM (IST)
- Source:JND
Anil Ambani Fraud Case: Bank of Baroda on Friday declared the loan accounts of insolvent Reliance Communications and its chairman, Anil Ambani, as "fraud", days after the State Bank of India (SBI) and Bank Of India (BOI) classified the RCom and Anil Ambani's loan accounts as fraudulent. In its regulatory filing, Reliance Communication said that the BoB named its former Anil Ambani, citing alleged misutilisation of loans granted more than a decade back.
RCom said it has received a letter from BoB dated September 2 conveying its decision to classify the loan account of the company and promoter Anil Ambani as "fraud". Bank of Baroda had sanctioned Rs 1,600 crore and another Rs 862.50 crore in line of credit to the company. Of the total Rs 2,462.50 crore, Rs 1,656.07 crore remains outstanding as on August 28.
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The bank, in its statement, said that the declaration of fraud is based on findings/observations in forensic audit reports and "such classification is in line with the principles of natural justice". Under banking laws, once an account is declared fraudulent, it must be referred to enforcement agencies for criminal action, and the borrower is barred from accessing fresh finance from banks and regulated institutions for five years.
What Is The "Loan Fraud" Case Against Anil Ambani and RCom?
The fraud case involving RCom states that the company had conspired against lenders by taking huge sums as loans and then diverting the loan funds for other purposes, such as misusing and diverting loan funds to related parties and repaying other bank debts. There was also a huge manipulation of books involved, as stated by a forensic report by the State Bank of India, conducted in 2020.
The audit by SBI in 2020 also revealed that the company had faked business transactions by writing off fake loans and inventing customers as a way to hide the company's financial vulnerabilities. In the 2020 investigation, it was revealed that Yes Bank officials had approved about Rs 3000 crore worth of loans between 2017 and 2019 with significant violations of procedures.
Anil Ambani's Statement On The Fraud Label
In a statement, a spokesperson of Ambani said the action of Bank of Baroda pertained to matters dating back more than 12 years. "It is pertinent to note that Anil D Ambani served as a non-executive director on the board of RCom from inception in 2006 until his resignation from the board in 2019, over six years ago," it said.
"He was never an executive director or a KMP of the company, and had no role whatsoever in the day-to-day operations or decision-making of the company," it said. Stating that RCom had a lender consortium comprising 14 banks, it said, "after an inordinate lapse of more than 10 years, select lenders have now chosen to initiate proceedings in a staggered and selective manner targeting Mr Ambani".
"Ambani Categorically denies all allegations and charges and shall pursue remedies available to him in accordance with legal advice," the statement said.
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Aftermath Of The "Fraud" Label
The banks' fraud classification of Anil Ambani and RCom has led to several consequences for the chairman and the company. The CBI has already initiated a strict investigation and conducted raids related to fraud allegations. As a result of being declared a "fraud," Anil Ambani and those involved with RCom have been barred from accessing fresh credits from banks and regulated financial institutions.
The fraud labels have also caused huge complications for RCom, as it has been going through a corporate insolvency resolution process. Anil Ambani and RCom have stated that they will seek legal advice and challenge the bank declarations. The investigation is ongoing, and the matter is being undertaken by the Supreme Court and the National Company Law Tribunal (NCLT).
