Shares of Reliance Communications Ltd (RCom) are expected to remain in focus today after the company disclosed that State Bank of India (SBI) has moved to classify its loan account as fraud — a step that also implicates former director Anil Ambani.
In a stock exchange filing on July 1, RCom said SBI intends to report Ambani’s name to the Reserve Bank of India (RBI), sparking another round of legal battle amid the company’s ongoing insolvency proceedings. The classification stems from a forensic audit conducted by BDO in 2020, which led SBI’s fraud panel to flag the account. Notably, Canara Bank had declared the loan as fraud in November 2024, though that order was later overturned by the Delhi High Court.
Ambani’s legal team termed SBI’s move “ex parte” and in breach of natural justice, arguing that show-cause notices issued were outdated under revised RBI rules. They maintained that Ambani had no executive role at RCom during the period in question and accused SBI of failing to share key documents required for a response.
SBI’s June 13 review reportedly cited financial irregularities, including the alleged diversion of ₹12,692 crore — about 41% of total loans worth ₹31,580 crore — to connected parties. The findings claim sanctioned funds were misused, routed through subsidiaries, and masked via inter-company loans and circular transactions.
RCom, currently under an NCLT-appointed resolution professional, stated that the classification would have “no impact” given protections under the Insolvency and Bankruptcy Code. Ambani’s lawyers further argued that SBI’s decision defied rulings of the Supreme Court, the Bombay High Court, and RBI guidelines, and called for withdrawal of the order and a personal hearing.
Meanwhile, RCom’s shares were trading actively today as investors assessed the implications of the development.
