SBI Labels Reliance Communications and Anil Ambani as ‘Fraud’, Plans to File CBI Complaint

The State Bank of India (SBI) has officially declared Reliance Communications (RCom) and its promoter director Anil D. Ambani as ‘fraudulent entities’. The government shared this information in Parliament on Monday, confirming that the bank is also preparing to file a complaint with the Central Bureau of Investigation (CBI). Recently, Canara Bank has Withdrawn ‘Fraud’ Tag from Anil Ambani’s Loan Account and has informed the same to Bombay High Court.

Fraud Classification and RBI Rules

According to Minister of State for Finance Pankaj Chaudhary, SBI made this classification on June 13, 2025, following the guidelines under the Reserve Bank of India’s (RBI) Master Directions on Fraud Risk Management and SBI’s own internal policy approved by its Board.

The fraud classification was officially reported to the RBI on June 24, 2025, and the bank is now in the process of lodging a formal complaint with the CBI.

Details of SBI’s Exposure to Reliance Communications

The minister also provided financial details of SBI’s exposure to RCom:

• Fund-based loan (main loan amount): ₹2,227.64 crore (including interest and other costs since August 26, 2016)
• Non-fund based exposure (like Bank Guarantees): ₹786.52 crore

This means that SBI has over ₹3,000 crore at stake with RCom.

Ongoing Insolvency Proceedings Against RCom and Anil Ambani

Reliance Communications is currently going through a Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC), 2016. A resolution plan (a proposal to repay creditors) has already been approved by RCom’s Committee of Creditors and was filed with the National Company Law Tribunal (NCLT), Mumbai on March 6, 2020. However, the NCLT’s final approval is still pending.

SBI has also started a Personal Insolvency Resolution Process against Anil D. Ambani under the IBC, and this case is currently being heard by the NCLT in Mumbai.

Fraud Tag Was Earlier Reversed Due to Court Order

Interestingly, this is not the first time SBI classified RCom and Anil Ambani as fraudulent. The bank had earlier done so on November 10, 2020 and a complaint was filed with the CBI on January 5, 2021. However, that complaint was returned because the Delhi High Court issued a “status quo” order on January 6, 2021, which temporarily stopped further action.

Supreme Court Mandate: Borrowers Must Be Heard Before ‘Fraud’ Tag

Later, on March 27, 2023, the Supreme Court ruled in the case State Bank of India & Others Vs Rajesh Agarwal & Others that borrowers must be given a chance to explain their side before being labelled as fraud. As a result, SBI reversed the fraud classification on September 2, 2023 to follow the proper legal procedure.

Fraud Tag Reapplied After Following Due Process

After complying with the Supreme Court’s decision and following the updated RBI circular dated July 15, 2024, SBI re-initiated the fraud classification process. This time, after giving RCom and Anil Ambani a chance to be heard, the bank again classified the account as ‘fraud’ on June 13, 2025, ensuring that all legal procedures were properly followed.