SBI Declares Reliance Communications’ ₹31,580 Crore Loans as Fraud; Anil Ambani to Be Reported to RBI

In a shocking development, the State Bank of India (SBI) has officially classified Reliance Communications’ ₹31,580 crore loan account as ‘fraud’. The bank also plans to report Anil Ambani, the company’s director, to the Reserve Bank of India (RBI) for further regulatory action.

On June 23, 2025, SBI submitted an exchange filing revealing this decision. According to the filing, SBI’s Fraud Identification Committee (FIC) found serious misuse of loan funds by Reliance Communications and its subsidiaries, Reliance Infratel and Reliance Telecom.

SBI’s investigation found two major violations. First, a ₹250 crore loan taken from Dena Bank was meant to cover short-term cash flow needs and payments to statutory creditors. Instead, the company diverted these funds to RailTel Corporation of India (RCIL) as an unsecured inter-corporate deposit. Later, the company claimed it used the money to repay an ECB loan from BNP-Paribas, but this purpose was not disclosed at the time of disbursal.

In the second case, India Infrastructure Finance Company Ltd (IIFCL) sanctioned ₹248 crore for capital expenditure. However, Reliance Communications allegedly used ₹63 crore to pay RITL and ₹77 crore to RIEL. The funds were routed through RCIL, and no explanation was provided by Anil Ambani or the company, raising concerns of deliberate misappropriation.

SBI’s FIC found that out of the ₹31,580 crore loaned by banks, ₹13,667.73 crore (44%) was used to repay existing loans and dues to financial institutions. However, ₹12,692.31 crore (41%) was allegedly diverted to related or connected parties. Further, ₹6,265.85 crore from SBI was used to repay loans from other banks, while ₹5,501.56 crore was paid to related entities. An additional ₹1,883.08 crore was invested and later liquidated for non-disclosed payments.

According to SBI, the usage of funds did not match the terms mentioned in the official sanction letters. This indicates clear fund diversion, violation of loan agreements, and breach of trust.

This case has significant implications for the banking sector. It shows how large-scale fund misuse by corporates can threaten financial institutions and lead to severe consequences. If RBI accepts the report against Anil Ambani, legal and financial actions may follow.

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