Big Trouble For Anil Ambani! CBI Files Case Against Reliance Communications In Bank Fraud Case

The Central Bureau of Investigation (CBI) has initiated a case against Reliance Communications and its promoter director, Anil Ambani, for an alleged bank fraud. This fraud reportedly resulted in a loss exceeding ₹2,000 crore to the State Bank of India (SBI), according to officials on August 23, 2025. Searches are underway at Anil Ambani's residence and other locations linked to Reliance Communications.

The CBI's action follows a complaint from SBI. The bank had classified the entities as fraudulent on June 13, in line with the Reserve Bank of India's guidelines on fraud risk management. Minister of State for Finance Pankaj Chaudhary mentioned in a Lok Sabha reply that the bank reported this classification to the RBI on June 24, 2025, and is also filing a complaint with the CBI.

Fraud Classification and Legal Proceedings

SBI's credit exposure to Reliance Communications includes a fund-based principal outstanding amount of ₹2,227.64 crore, along with accrued interest and expenses from August 26, 2016. Additionally, there is a non-fund-based bank guarantee of ₹786.52 crore involved. The company is currently undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC) of 2016.

The resolution plan for Reliance Communications was approved by the Committee of Creditors and submitted to the National Company Law Tribunal (NCLT) in Mumbai on March 6, 2020. However, approval from NCLT is still pending. Meanwhile, SBI has also started a Personal Insolvency Resolution Process against Anil D. Ambani under IBC, which is being heard by NCLT Mumbai.

Legal Developments and Court Orders

On November 10, 2020, SBI classified both Anil D. Ambani's account and his company as 'fraud' and lodged a complaint with the CBI on January 5, 2021. However, this complaint was returned due to a 'status quo' order issued by the Delhi High Court on January 6, 2021.

A Supreme Court ruling dated March 27, 2023, in the case involving State Bank of India & Others Vs Rajesh Agarwal & Others required lenders to give borrowers an opportunity to present their case before classifying accounts as fraudulent. Consequently, SBI reversed its fraud classification on September 2, 2023.

Following due process as per an RBI circular dated July 15, 2024, SBI reclassified the account as 'fraud.' This reclassification followed all necessary procedures outlined by regulatory authorities.

This ongoing legal battle highlights significant challenges faced by financial institutions when dealing with large-scale corporate defaults and insolvencies in India. The outcome will likely have implications for future cases involving similar allegations.