The State Bank of India (SBI), India’s largest lender, has decided to classify the loan account of the bankrupt telecom firm Reliance Communications as “fraudulent” and report the name of Anil Ambani, former Director of the company, to the Reserve Bank of India, citing suspected irregularities in the account, the company revealed on Tuesday.
In a regulatory filing to the exchanges, the company said “the loan account of the company (is) to be classified as fraud” by SBI. The disclosure included a letter dated June 23 from SBI outlining the rationale behind its decision.
“We have taken cognisance of the responses (wherever received) to our SCN (show-cause notice) 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 Communications to the satisfaction of the bank,” the bank said in a letter to the company on June 23.
“Accordingly, Fraud Identification Committee of the bank has decided to classify the loan account of Reliance Communication as fraud for the reasons mentioned in the enclosed order,” the bank said.
“The bank shall be taking further course of action to report the account of Reliance Communication and names of Anil Ambani, director of the company, at material time, to the Reserve Bank of India as per the directions contained in the RBI Master Directions/ Circulars issued from time to time, in this regard,” SBI said.
According to Reliance Communications, the company is undergoing corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016. A resolution plan has been approved by the committee of creditors of the company in accordance with the Code and is presently awaiting approval of the National Company Law Tribunal, Mumbai Bench.
The company had earlier reported total outstanding debt of Rs 40,400 crore.
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“The credit facilities/loans referred to in the letter from SBI dated June 23, 2025 (received on June 30, 2025) pertain to the period prior to the CIRP of the company (as identified within the letter), and are required in terms of the Code, to be necessarily resolved as a part of a resolution plan or in liquidation, as the case may be,” the company clarified.
“Further, during the CIRP, the company is protected from the institution/ continuation of any suits/ proceedings against the company, including the execution of any judgement, decree or order in any court of law, tribunal, arbitration panel or other authority in light of Section 14(1)(a) of the Code,” Reliance Communications said.
“To that extent, it may be noted that by virtue of the protection made available under Section 32A of the Code, upon the approval of the resolution plan in respect of the company by the NCLT, the company shall be deemed to have immunity against any liability for any purported offences committed by the company prior to the commencement of the CIRP (including any liability which may arise as a result of any unlawful transactions identified in the forensic audit report),” the company said.
“Further, under Section 238 of the Code, the provisions of the Code override anything inconsistent contained in any other law,” it said.
