**Summary:**
In response to a query in the Lok Sabha on July 21, 2025, regarding the classification of Reliance Communications Limited (RCOM) and its Promoter Director, Mr. Anil D Ambani, as a fraud account by the State Bank of India (SBI), the Ministry of Finance provided the following details. SBI classified RCOM and Mr. Ambani as fraud on June 13, 2025, in accordance with Reserve Bank of India (RBI) guidelines and SBI's internal fraud management policies. This action was subsequently disclosed to the Bombay Stock Exchange by RCOM's Resolution Professional on July 1, 2025.
The total credit exposure by SBI in this account includes a fund-based principal outstanding amount of Rs. 2,227.64 crore, along with accrued interest and expenses effective August 26, 2016, and a non-fund based Bank Guarantee of Rs. 786.52 crore.
Currently, RCOM is undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). A resolution plan, approved by the Committee of Creditors, was filed with the National Company Law Tribunal (NCLT), Mumbai, on March 6, 2020; NCLT approval is pending. SBI has also initiated Personal Insolvency Resolution Process under IBC against Mr. Anil D Ambani, which is being heard by NCLT, Mumbai.
SBI had initially classified the account and Mr. Ambani as fraud on November 10, 2020, and filed a complaint with the Central Bureau of Investigation (CBI) on January 5, 2021. However, the complaint was returned due to a "status quo" order issued by the Delhi High Court on January 6, 2021. Following a Supreme Court judgement on March 27, 2023, mandating lenders to provide borrowers an opportunity to represent themselves before fraud classification, SBI reversed the classification on September 2, 2023. The fraud classification process was rerun, adhering to RBI circular dated July 15, 2024, and the account was re-classified as Fraud. SBI reported this classification to RBI on June 24, 2025, and is in the process of lodging a complaint with CBI.
Key Entities Referenced
State Bank of India: A major public sector bank in India, referred to as SBI in the text. The document discusses SBI's handling of a loan account.
Anil Ambani: An Indian businessman and promoter director, specifically mentioned in relation to the Reliance Communications loan account classified as fraud.
Reliance Communications Limited: A telecommunications company, referred to as RCOM. Its loan account with SBI was classified as fraud.
Reserve Bank of India: The central bank of India, referred to as RBI. Its Master Directions on Fraud Risk Management are referenced in the document.
Insolvency and Bankruptcy Code, 2016: An Indian law that provides a framework for the resolution of insolvency and bankruptcy proceedings. Referred to as IBC.
National Company Law Tribunal, Mumbai: A quasi-judicial body in India that adjudicates issues relating to Indian companies. The Resolution Plan was filed with NCLT Mumbai.
Central Bureau of Investigation: The premier investigating agency in India, referred to as CBI. SBI had filed a complaint with the CBI regarding the fraud.
High Court, Delhi: The High Court of Delhi, which issued a 'status quo' order related to the CBI complaint.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO- 113
ANSWERED ON MONDAY, JULY 21, 2025/ASHADHA 30, 1947 (SAKA)
STEPS TAKEN BY SBI TO SAFEGUARD PUBLIC SAVINGS
113. SHRI S VENKATESAN
Will the Minister of FINANCE be pleased to state:-
(a) whether the Government has taken cognizance of the new item "State Bank of India
(SBI) classified Anil Ambani-led Reliance Communications' loan account as fraud"
appeared in "The Hindu" dated 2 July, 2025;
(b) if so, the details thereof and the action taken thereon;
(c) the total amount of credit involved in the case; and
(d) the remedial steps taken by the SBI to safeguard public savings lost due to this along
with the present status thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a) to (d): Yes sir. SBI has classified Reliance Communications’ Limited (RCOM) along
with Promoter Director Mr. Anil D Ambani as “Fraud” on 13.06.2025 in accordance
with the Reserve Bank of India’s Master Directions on Fraud Risk Management and
Bank’s Board-approved Policy on Classification, Reporting & Management of Frauds.
Further, on 01.07.2025, as part of disclosure compliance, Resolution Professional of
RCOM has informed the Bombay Stock Exchange regarding fraud classification by the
bank.
The credit exposure by SBI in the aforesaid account includes, fund based – principal
outstanding amount of Rs. 2,227.64 crore along with the accrued interest and expenses
w.e.f. 26.08.2016 and non-fund based Bank Guarantee of Rs. 786.52 crore.
RCOM is undergoing Corporate Insolvency Resolution Process under the Insolvency
and Bankruptcy Code, 2016 (IBC). Resolution Plan was approved by the Committee of
Creditors and filed with the National Company Law Tribunal (NCLT), Mumbai on
06.03.2020, and NCLT approval is awaited.
The bank has also initiated Personal Insolvency Resolution Process under IBC against
Mr. Anil D Ambani and the same is being heard by NCLT, Mumbai.The Bank had earlier classified the account and promoters Mr. Anil D Ambani as
“Fraud” on 10.11.2020 and filed a complaint with the Central Bureau of Investigation
(CBI) on 05.01.2021. However, the complaint was returned in view of the "status quo"
order dated 06.01.2021 by the Hon'ble High Court, Delhi.
Meanwhile, the Hon’ble Supreme Court Judgement dated 27.03.2023 in Civil Appeal No.
7300-7307 of 2022 (State Bank of India & Others Vs Rajesh Agarwal & Others)
mandated that lenders provide borrowers with an opportunity to represent before
classifying their accounts as fraud. Accordingly, the fraud classification in the account was
reversed by the bank on 02.09.2023.
The fraud classification process was re-run, and the account was again classified as
“Fraud” after following the due process as per RBI circular dated 15.07.2024.
On 24.06.2025, the bank has reported classification of fraud to RBI, and is also in the
process of lodging complaint with CBI.
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