MUMBAI: The State Bank of India (SBI) has officially declared a massive ₹31,580 crore loan to Reliance Communications (RCom) as “fraud” and named the company’s former director Anil Ambani in a report to the Reserve Bank of India (RBI). The decision was disclosed in a regulatory filing made by RCom, which is currently undergoing liquidation.
According to the filing, the bank’s Fraud Identification Committee identified serious deviations in loan usage, involving complex fund transfers across RCom’s group entities. SBI’s letter, dated June 23, 2025, highlighted that the name of Anil Ambani has been included as part of the RBI’s mandated fraud reporting.
The findings revealed that nearly 85% of the sanctioned amount was used in ways inconsistent with the original loan purpose. Specifically, ₹13,667 crore (44%) was utilised to repay prior loans, while ₹12,692 crore (41%) was routed to related parties.
One example cited involved a ₹250 crore loan from Dena Bank, intended for statutory dues, being diverted as an Inter-Corporate Deposit (ICD) to RCom Group company Reliance Communications Infrastructure Ltd (RCIL), then used to repay an External Commercial Borrowing (ECB) loan. Another ₹248 crore loan from IIFCL, meant for capital expenditure, was partially redirected through RCIL to other RCom entities.
The committee described these financial movements as misappropriation of funds and a breach of trust, noting that many transactions lacked clarity or justification from management or Anil Ambani. In total, RCom, RITL, and RTL engaged in ICD transactions amounting to ₹41,863 crore, with only ₹28,421 crore being traceable.
The report also flagged suspicious intraday fund cycling. RCom reportedly used a ₹100 crore intraday credit limit to move funds between subsidiaries like RWSL, RTL, and RCIL—sometimes multiple times in a single day—to artificially reduce receivables and create fictitious accounting entries.
Additionally, the committee raised concerns over dealings with a company called Netizens, suggesting a broader pattern of fund diversion and book manipulation within the group.
With RCom now in liquidation, the fraud designation and associated findings are expected to have serious implications for its remaining assets and the future actions of regulatory authorities.
