After SBI, Bank of India tags Reliance Communications; Anil Ambani as fraud, firm denies allegations

Previously, State Bank of India had done the same in June this year, alleging misappropriation of bank funds by entering into transactions that violated the terms of the loans

New Delhi August 24, 2025: After the State Bank of India, Bank of India has classified the loan account of insolvent Reliance Communications as fraudulent and named its former director, tycoon Anil Ambani, citing alleged fund diversion in 2016, according to a regulatory filing.

The company in a statement said that the complaint filed by State Bank of India (SBI) pertains to matters dating back more than 10 years and the bank’s declaration has been challenged before the competent judicial forum.

“The complaint filed by State Bank of India (SBI) pertains to matters dating back more than 10 years. At the relevant time, Mr. Ambani was a Non-Executive Director of the company, with no involvement in the day-to-day management,” the company said in a statement.

“It is pertinent to note that SBI, by its own order, has already withdrawn proceedings against five other Non-Executive Directors. Despite this, Mr. Ambani has been selectively singled out,” the company added.

The company in a statement, “strongly denied all allegations and charges” and said he “will duly defend himself”.

“Mr Ambani has duly challenged SBI’s declaration before the competent judicial forum. Mr. Ambani strongly denies all allegations and charges, and will duly defend himself,” it further said.

“The matter remains sub judice, pending before the NCLT and other judicial forums, including the Supreme Court, for the past six years,” the statement reads.

State-owned Bank of India granted a Rs 700 crore loan in August 2016 to Reliance Communications for its ongoing capital and operational expenditure and repayment of existing liabilities. Half of the sanctioned amount disbursed in October 2016 was invested in a fixed deposit, which was not permitted as per the sanction letter, according to the bank’s letter that RCom disclosed in a stock exchange filing.

RCom said that it has on August 22 received a letter from Bank of India dated August 8 stating the bank’s decision “to classify the loan accounts of the company, Anil Dhirajlal Ambani (promoter and erstwhile director of the company), and Manjari Ashok Kacker (erstwhile director of the company), as Fraud”.

Previously, State Bank of India (SBI) had done the same in June this year, alleging misappropriation of bank funds by entering into transactions that violated the terms of the loans.

Following a complaint by SBI, the Central Bureau of Investigation (CBI) on Saturday searched premises linked to Reliance Communications and Ambani’s residence.

Source: The telegraph online .com