SBI labels Anil Ambani as 'fraud' once again: Here's why
What's the story
The State Bank of India (SBI) has flagged Reliance Communications Limited (RCom) and its promoter director Anil D Ambani as 'fraud.' The classification was made on June 13, 2025, under the Reserve Bank of India's (RBI) Master Directions on Fraud Risk Management and SBI's Board-approved Policy on Classification, Reporting & Management of Frauds. This was revealed by Minister of State for Finance Pankaj Chaudhary, who also confirmed that SBI is in the process of filing a complaint with the CBI.
Financial details
SBI's credit exposure to RCom
SBI's credit exposure to RCom includes a fund-based principal outstanding amount of ₹2,227.64 crore along with accrued interest and expenses from August 26, 2016. It also includes a non-fund-based bank guarantee of ₹786.52 crore. Notably, RCom is currently undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC), 2016 with NCLT approval awaited for the resolution plan filed on March 6, 2020.
Personal insolvency
Personal insolvency resolution process against Anil Ambani
In addition to RCom, SBI has also initiated a Personal Insolvency Resolution Process under IBC against Ambani. The case is currently being heard by NCLT, Mumbai. Notably, this isn't the first time SBI has classified RCom and Ambani as 'fraud.' The bank had done so on November 10, 2020, and filed a complaint with CBI on January 5, 2021. However, the complaint was returned due to a 'status quo' order by Delhi High Court.
Legal implications
SC ruling led to reversal of earlier fraud classification
A Supreme Court ruling on March 27, 2023, in the case of SBI & Others Vs Rajesh Agarwal & Others, mandated lenders to give borrowers a chance to represent before classifying their accounts as fraud. In compliance with this ruling, SBI reversed its earlier fraud classification on September 2, 2023. However, the process was re-run and RCom's account was again classified as 'fraud' in accordance with RBI circular dated July 15.