New Delhi— After the State Bank of India, the Bank of India has classified Reliance Communications’ loan account as fraudulent, also naming former director Anil Ambani and citing alleged diversion of funds in 2016. The development was disclosed in a stock exchange filing on Thursday.
Bank of India had sanctioned a ₹700 crore loan in August 2016 for capital expenditure, operational costs, and repayment of liabilities. However, according to the bank, part of the disbursed funds—nearly half—was diverted into fixed deposits, a move not permitted under the sanction terms.
In its filing, Reliance Communications said it had received a letter from Bank of India dated August 8 informing the company that the loan accounts of RCom, Anil Ambani, and former director Manjari Ashok Kacker had been classified as “fraud.” The bank noted that RCom’s account turned non-performing on June 30, 2017, with dues of over ₹724 crore remaining unpaid despite repeated follow-ups.
Earlier in June, State Bank of India had also tagged RCom’s loans as fraudulent, alleging misappropriation of funds through transactions that violated loan conditions. Following SBI’s complaint, the Central Bureau of Investigation carried out searches at Reliance Communications’ offices and Ambani’s residence last weekend.
SBI has claimed a loss of ₹2,929 crore due to alleged fund diversion. The CBI has since registered a case against Reliance Communications and Ambani.
Anil Ambani’s spokesperson has rejected the allegations, calling them “baseless and motivated.” The statement emphasized that the issues date back more than a decade, when Ambani was only a non-executive director with no role in day-to-day operations. The spokesperson also highlighted that SBI had withdrawn proceedings against several other former non-executive directors, yet Ambani had been “selectively singled out.”
Reliance Communications further disclosed that its subsidiary Reliance Telecom Ltd had also received a similar notice from Bank of India, classifying the accounts of the company and former director Grace Thomas as fraudulent.
Under banking regulations, accounts declared fraudulent must be reported to investigative agencies, and borrowers are barred from fresh loans for five years.
Reliance Communications, once a telecom giant, is currently undergoing insolvency proceedings with debts exceeding ₹40,000 crore. The process is being managed by a Committee of Creditors led by SBI, under the supervision of a resolution professional.
