Anil Ambani Declared 'Fraud' by Bank of Baroda Over Reliance Communications Loans Following SBI & BoI Actions

Bank of Baroda, a major public sector bank in India, has labelled the loan accounts of Reliance Communications Ltd. (RCom) and its former Director, Anil Ambani, as 'fraud'. This classification relates to loans taken before RCom entered the corporate insolvency resolution process (CIRP). The development is a significant turn in the financial issues surrounding the telecom company and its former director.

Bank of Baroda Declared Anil Ambani as 'Fraud'

RCom is currently under the CIRP as per the Insolvency and Bankruptcy Code (IBC), 2016. The company stated that these loans are from before its insolvency proceedings began. It insists that these loans should be resolved through a resolution plan or liquidation under the IBC. Presently, Anish Niranjan Nanavaty acts as the resolution professional for RCom.

Reliance Communications' Response on Bank of Baroda's Action

In an official statement, the company clarified that Anil Ambani served only as a Non‑Executive Director from 2006 to 2019 and had no role in daily management. The statement accused select banks of initiating proceedings "in a staggered and selective manner," calling the move discriminatory and unsubstantiated.

"It is pertinent to note that Mr. Anil D. Ambani served only as a Non-Executive Director on the Board of RCom from inception in 2006 until his resignation from the Board in 2019, over six years ago (for almost 14 years) . He was never an Executive Director or a KMP of the company, and had no role whatsoever in the day-to-day operations or decision-making of the company, " a spokesperson on behalf of Mr Anil D. Ambani said.

The spokesperson further stated, "Mr. Anil D. Ambani categorically denies all allegations and charges and shall pursue remedies available to him in accordance with legal advice." Meanwhile, RCom is seeking legal counsel regarding Bank of Baroda's recent action against it.

SBI, BoI Also Flag RCom Loans as Fraud

This action by BoB follows similar fraud classifications by other major banks. In June 2025, State Bank of India (SBI) also labeled RCom and Anil Ambani as fraud, citing fund diversion and violations of loan terms. SBI reported the matter to the Reserve Bank of India (RBI) and is preparing a formal complaint to the CBI.

Earlier in August 2025, Bank of India (BoI) classified the accounts as fraudulent too, alleging irregularities amounting to Rs 2,929 crore. Notably, Canara Bank had also done so earlier, but had later withdrawn its fraud label following legal challenges.

NCLT to Review RCom Resolution Plan as ED Eyes Loan Irregularities

A resolution plan for RCom has been approved by its committee of creditors and awaits approval from the National Company Law Tribunal (NCLT). During CIRP, RCom is protected from any suits or proceedings against it, including judgments or orders by courts or arbitration panels.

This situation unfolds amid an ongoing investigation by the Enforcement Directorate (ED) into alleged loan fraud involving Anil Ambani's group entities. The ED has reportedly sought information from 12-13 banks about loans given to Reliance Housing Finance, RCom, and Reliance Commercial Finance.