[BREAKING] Reliance Communications Loan gets flagged as “Fraud” by SEBI, SBI set to complain to CBI: Lok Sabha Answer by FinMin
This is not the first time the account has been classified as fraud; SBI had previously flagged RCOM and its promoter as “fraud” in 2020, but that was reversed after a Supreme Court order.

A loan account of Reliance Communications Limited (RCOM), headed by Anil D. Ambani has been officially classified as "fraud" by the State Bank of India (SBI), with the matter now attracting regulatory attention and legal consequences.
Acting under the Reserve Bank of India’s (RBI) updated Master Directions on Fraud Risk Management, SBI declared on June 13, 2025, that both RCOM and its promoter director are to be considered "fraud" accounts.
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This decision followed the completion of all due process, including providing the borrower with an opportunity to be heard, as mandated by the Supreme Court and the RBI’s guidelines. The classification was subsequently disclosed by RCOM’s Resolution Professional to the Bombay Stock Exchange (BSE) on July 1, 2025, to comply with disclosure norms.
The total credit exposure of SBI to Reliance Communications stands at ₹2,227.64 crore as the principal outstanding amount, with accrued interest and expenses dating back to August 2016. In addition, there is a non-fund-based bank guarantee of ₹786.52 crore linked to the account.
RCOM is currently undergoing the Corporate Insolvency Resolution Process under the Insolvency and BankruptcyCode (IBC), with a resolution plan approved by the Committee of Creditors now awaiting the National Company Law Tribunal’s (NCLT) final nod. Meanwhile, SBI has also initiated a Personal Insolvency Resolution Process against Anil D. Ambani, which is currently under consideration by the NCLT in Mumbai.
While SEBI is not the authority that flags loans as “fraud,” the case came to light through disclosure compliance made to the BSE, overseen by SEBI’s listing regulations. SBI’s fraud declaration means that the bank, having met all legal requirements, will now proceed with filing a formal complaint to the Central Bureau of Investigation (CBI).
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This is not the first time the account has been classified as fraud; SBI had previously flagged RCOM and its promoter as “fraud” in 2020, but that action was reversed following a Supreme Court order that required a more rigorous due process. With updated RBI instructions, the process was conducted afresh, culminating in the latest fraud classification in June 2025.
As of June 24, 2025, SBI has formally reported the classification to RBI and is preparing to lodge the complaint with the CBI. These actions point towards increasing regulatory and legal scrutiny faced by large corporate borrowers and the strengthened measures being taken by banks to protect public funds and maintain transparency in the financial sector.
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