Reliance Communications Limited (RCOM) has informed the stock exchanges that it has received a communication from Bank of Baroda, which has decided to classify the loan accounts of the company and its promoter, Anil Dhirubhai Ambani, as ‘fraud’.
In a filing dated September 4, 2025, RCOM said the letter, dated September 2, 2025, was received from Bank of Baroda on September 3. The disclosure has been made under Regulation 30(2) of SEBI’s Listing Obligations and Disclosure Requirements (LODR), 2015.
Details of the classification
According to the disclosure, Bank of Baroda has categorized the loan accounts of both Reliance Communications and Anil Ambani (erstwhile director of the company) as fraudulent. The bank is required to report this classification to the Reserve Bank of India (RBI) in compliance with its Master Directions on Fraud Risk Management in Commercial Banks and All India Financial Institutions, 2024, and to follow up with relevant regulatory authorities.
Impact on Reliance Communications
Reliance Communications clarified that it is already undergoing a corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016. A resolution plan has been approved by the committee of creditors and is currently awaiting approval from the National Company Law Tribunal (NCLT), Mumbai Bench.
The company noted that the credit facilities/loans referred to in Bank of Baroda’s letter relate to the period before the CIRP began and will need to be resolved as part of the insolvency process or liquidation, as applicable.
RCOM also highlighted that:
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The resolution professional has already undertaken an audit of avoidance transactions, with applications filed before the NCLT.
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Under Section 32A of the IBC, once the resolution plan is approved, the corporate debtor is granted immunity against offences committed prior to the commencement of CIRP.
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Therefore, the company itself is protected from prosecution for past liabilities once the NCLT-approved resolution plan takes effect.
Legal review underway
The company further said that legal advice is being sought on the way forward in relation to this development.
Implications for Anil Ambani
While Reliance Communications is protected under CIRP provisions, the classification also names Anil Ambani in his capacity as promoter and erstwhile director. His account has also been marked as fraud by Bank of Baroda, and the matter will be reported to authorities as required under RBI norms.
Next steps
RCOM has stated that corrective measures will be guided by the resolution professional, the NCLT’s decisions, and the provisions of the Insolvency and Bankruptcy Code.
