SBI Labels RCom Loan as Fraud, Ambani Responds

The State Bank of India (SBI) has designated Reliance Communications' loan account as 'fraud', citing alleged fund diversion and violations of loan terms in transactions dating back to at least 2016, based on a forensic audit. SBI will report former director Anil Ambani to the Reserve Bank of India, though Ambani contends the move is ex-parte and breaches natural justice. Reliance Communications, currently under insolvency proceedings, maintains that insolvency protections shield its operations and stakeholders from immediate impact. Other Reliance Group companies, Reliance Infrastructure and Reliance Power, have clarified that this action does not affect their business or financials. The fraud classification could restrict Reliance Communications' access to future financing and result in legal challenges. Final resolution awaits National Company Law Tribunal approval.