SBI to classify RCom loan accounts as fraud, report Anil Ambani's name to RBI
RCom: The loans referred to in SBI’s letter dated June 23 pertain to the pre-CIRP period and, under the IBC, must be addressed through the approved resolution plan or liquidation proceedings.
- Jul 2, 2025,
- Updated Jul 2, 2025 6:34 PM IST
Reliance Communications (RCom) has informed the stock exchanges BSE and NSE that State Bank of India (SBI) has classified its loan account as 'fraud'. The state-run lender intends to report the name of Shri Anil Dhirajlal Ambani, the company’s former director, to the Reserve Bank of India (RBI) under applicable guidelines, the company told BSE on July 1.
RCom is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). A resolution plan has already been approved by the company’s Committee of Creditors and is awaiting final approval from the National Company Law Tribunal (NCLT), Mumbai Bench.
The loans referred to in SBI’s letter dated June 23 (received by the company on June 30) pertain to the pre-CIRP period and, under the IBC, must be addressed through the approved resolution plan or liquidation proceedings.
In the letter, SBI said: " We have taken cognizance of the responses (wherever received) to our SCN and after due examination of the same it is concluded that sufficient reasons have not been provided by the respondent, to explain the non-adherence to the agreed terms and conditions of the loan documents or the irregularities observed in the conduct of the account of Reliance Communication Limited to the satisfaction of the bank."
Accordingly, said SBI, Fraud ldentification Committee of the lender has decided to classify the loan account of Reliance Communication as Fraud. "The Bank shall be taking further course of action to report the account n Reliance Communication Limited and names of Shri. Anil Dhirajlal Ambani, director of the company at material time, to the Reserve Bank of India (RBI) as per the directions contained in the RBI Master Directions/ Circulars issued from time to time, in this regard," SBI said.
RCom stated that under Section 14(1)(a) of the Code, it is protected during the CIRP from the initiation or continuation of any legal proceedings, including the enforcement of any judgments or orders. Additionally, Section 32A provides immunity to the corporate debtor from liabilities for offences committed prior to the CIRP, provided there is a change in management as stipulated under the law once the resolution plan is approved by the NCLT.
Furthermore, Section 238 of the Code ensures that the provisions of the IBC take precedence over any conflicting laws.
Given these legal safeguards, the company does not expect the fraud classification to have any material impact. It is also seeking legal advice on the matter to determine appropriate next steps.
Company's response: 'State Bank of India's order referred in the RCOM disclosure is shocking and has been passed ex-parte, and in violation of the principles of natural justice. The order is in direct contravention of various judgments of the Hon’ble Supreme Court and the Hon’ble Bombay High Court, as well as RBI guidelines."
SBI has not even responded to Mr. Ambani’s communication about the invalidity of the Show Cause Notice (SCN) for almost a year, and has not even provided the information forming the basis of their decision despite being repeatedly requested by Mr. Ambani, to enable him to respond to the SCN.
SBI has also not allowed Mr. Ambani an opportunity of personal hearing to make submissions against its allegations.
SBI has withdrawn the show cause notice to other non-executive and independent directors of RCOM. Mr. Ambani was also a non-executive director and not involved in the day-to-day affairs of RCOM, and has been wrongly so categorized.
Mr. Ambani is pursuing the matter as legally advised.’
Reliance Communications (RCom) has informed the stock exchanges BSE and NSE that State Bank of India (SBI) has classified its loan account as 'fraud'. The state-run lender intends to report the name of Shri Anil Dhirajlal Ambani, the company’s former director, to the Reserve Bank of India (RBI) under applicable guidelines, the company told BSE on July 1.
RCom is currently undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). A resolution plan has already been approved by the company’s Committee of Creditors and is awaiting final approval from the National Company Law Tribunal (NCLT), Mumbai Bench.
The loans referred to in SBI’s letter dated June 23 (received by the company on June 30) pertain to the pre-CIRP period and, under the IBC, must be addressed through the approved resolution plan or liquidation proceedings.
In the letter, SBI said: " We have taken cognizance of the responses (wherever received) to our SCN and after due examination of the same it is concluded that sufficient reasons have not been provided by the respondent, to explain the non-adherence to the agreed terms and conditions of the loan documents or the irregularities observed in the conduct of the account of Reliance Communication Limited to the satisfaction of the bank."
Accordingly, said SBI, Fraud ldentification Committee of the lender has decided to classify the loan account of Reliance Communication as Fraud. "The Bank shall be taking further course of action to report the account n Reliance Communication Limited and names of Shri. Anil Dhirajlal Ambani, director of the company at material time, to the Reserve Bank of India (RBI) as per the directions contained in the RBI Master Directions/ Circulars issued from time to time, in this regard," SBI said.
RCom stated that under Section 14(1)(a) of the Code, it is protected during the CIRP from the initiation or continuation of any legal proceedings, including the enforcement of any judgments or orders. Additionally, Section 32A provides immunity to the corporate debtor from liabilities for offences committed prior to the CIRP, provided there is a change in management as stipulated under the law once the resolution plan is approved by the NCLT.
Furthermore, Section 238 of the Code ensures that the provisions of the IBC take precedence over any conflicting laws.
Given these legal safeguards, the company does not expect the fraud classification to have any material impact. It is also seeking legal advice on the matter to determine appropriate next steps.
Company's response: 'State Bank of India's order referred in the RCOM disclosure is shocking and has been passed ex-parte, and in violation of the principles of natural justice. The order is in direct contravention of various judgments of the Hon’ble Supreme Court and the Hon’ble Bombay High Court, as well as RBI guidelines."
SBI has not even responded to Mr. Ambani’s communication about the invalidity of the Show Cause Notice (SCN) for almost a year, and has not even provided the information forming the basis of their decision despite being repeatedly requested by Mr. Ambani, to enable him to respond to the SCN.
SBI has also not allowed Mr. Ambani an opportunity of personal hearing to make submissions against its allegations.
SBI has withdrawn the show cause notice to other non-executive and independent directors of RCOM. Mr. Ambani was also a non-executive director and not involved in the day-to-day affairs of RCOM, and has been wrongly so categorized.
Mr. Ambani is pursuing the matter as legally advised.’