After SBI, Bank of India tags Reliance Communications, Anil Ambani as ‘fraud’

After the State Bank of India, Bank of India has labeled the mortgage account of bancrupt Reliance Communications as fraudulent and named its former director, tycoon Anil Ambani, citing alleged fund diversion in 2016, in accordance with a regulatory submitting.

State-owned Bank of India granted a ₹700 crore mortgage in August 2016 to Reliance Communications for its ongoing capital and operational expenditure and compensation of current liabilities. Half of the sanctioned quantity disbursed in October 2016 was invested in a set deposit, which was not permitted as per the sanction letter, in accordance with the financial institution’s letter that RCom disclosed in a inventory trade submitting.

Reliance Communications mentioned that it has on August 22 obtained a letter from Bank of India dated August 8 stating the financial institution’s resolution “to classify the loan accounts of the company, Anil Dhirajlal Ambani (promoter and erstwhile director of the company), and Manjari Ashok Kacker (erstwhile director of the company), as Fraud”.

Previously, State Bank of India (SBI) had accomplished the identical in June this 12 months, alleging misappropriation of financial institution funds by coming into into transactions that violated the phrases of the loans.

Following a grievance by SBI, the Central Bureau of Investigation (CBI) on Saturday (August 23, 2025) searched premises linked to Reliance Communications and Ambani’s residence.

CBI mentioned it has registered a grievance after the State Bank of India claimed a loss of ₹2,929.05 crore, ensuing from the alleged misappropriation by Reliance Communications and Ambani, the youthful sibling of Asia’s richest man Mukesh Ambani.

Anil Ambani’s spokesperson, in a press release, “strongly denied all allegations and charges” and mentioned he “will duly defend himself”.

“The complaint filed by SBI pertains to matters dating back more than 10 years. At the relevant time, Ambani was a non-executive director of the company, with no involvement in the day-to-day management,” the spokesperson mentioned.

“It is pertinent to note that SBI, by its own order, has already withdrawn proceedings against five other non-executive directors. Despite this, Ambani has been selectively singled out.”

Reliance Communications within the newest submitting mentioned its subsidiary Reliance Telecom Ltd too has obtained a letter from Bank of India conveying the lender’s resolution to categorise the mortgage accounts of the corporate, Grace Thomas (erstwhile director of RTL and current director of the corporate) and sure different individuals as ‘Fraud’.

Under banking legal guidelines, as soon as an account is asserted fraudulent, it have to be referred to enforcement businesses for felony motion, and the borrower is barred from accessing recent finance from banks and controlled establishments for 5 years.

Bank of India, within the letter disclosed within the Reliance Communications submitting, mentioned RCom had turned NPA on June 30, 2017, with an impressive of ₹724.78 crore.

“The Bank has been following up with the borrowers and guarantors for repayment of dues; however, they have failed and neglected to make repayment of the dues.”

Reliance Communications had in April disclosed that its whole debt stood at Rs 40,400 crore in March.

Following unpaid loans, the corporate was admitted for insolvency and chapter proceedings. RCom is being managed below the supervision of a Committee of Creditors, led by SBI and overseen by a Resolution Professional.