Anil Ambani, Reliance Communications Face Fresh Fraud Tag from Bank of India

New Delhi, August 24 — Bank of India has classified Reliance Communications’ loan account as fraudulent, joining State Bank of India in raising allegations of fund diversion against the company and its former director Anil Ambani. The disclosure came through a stock exchange filing on Thursday.

The bank said it sanctioned a ₹700 crore loan in August 2016 for capital expenditure, operational costs, and repayment of liabilities. However, nearly half of the funds were allegedly diverted into fixed deposits, a move outside the terms of sanction.

Reliance Communications acknowledged receiving a letter from Bank of India dated August 8, informing that the accounts of RCom, Anil Ambani, and former director Manjari Ashok Kacker had been classified as “fraud.” The bank noted that the account turned non-performing on June 30, 2017, with over ₹724 crore still unpaid despite repeated reminders.

Earlier in June, SBI had also declared RCom’s loans fraudulent, alleging fund misappropriation and violation of lending terms. The Central Bureau of Investigation later registered a case against Reliance Communications and Anil Ambani, conducting searches at the company’s offices and Ambani’s residence. SBI claims a loss of ₹2,929 crore from the alleged diversion.

A spokesperson for Ambani dismissed the allegations, calling them “baseless and motivated.” The statement argued that the issues go back more than a decade, when Ambani served only as a non-executive director, with no role in operations. It also pointed out that while SBI withdrew action against several former non-executive directors, Ambani has been “selectively targeted.”

Reliance Communications further revealed that its subsidiary, Reliance Telecom Ltd, also received a similar notice from Bank of India, which classified its accounts and that of former director Grace Thomas as fraudulent.

Under existing banking norms, once declared fraudulent, accounts must be reported to investigative agencies, and borrowers are barred from accessing fresh loans for five years.

Once a telecom industry leader, Reliance Communications is undergoing insolvency proceedings with outstanding debt exceeding ₹40,000 crore. The process is being overseen by a Committee of Creditors led by SBI, under the supervision of a resolution professional.