The State Bank of India (SBI) has said that the loan given to Reliance Communications (RCom) is a fraud. This happened on June 23, 2025. SBI checked the loan records and found that a lot of the money was not used properly.
Out of the ₹31,580 crore that RCom took as loans, SBI found that ₹12,692 crore was given to other connected companies, which was not allowed. Also, about ₹6,265 crore was used to pay back loans to other banks, which was also not part of the loan plan. This is called diversion of funds, and it goes against the rules.
Because of this, SBI has declared the loan account as fraud and has reported Anil Ambani’s name to the Reserve Bank of India (RBI). Anil Ambani is the former owner of RCom. This is a serious step, and it means more checks and action may follow.
When a loan is marked as fraud:
– The person or company involved can face a police case
– They can be banned from taking loans for 5 years
– The case must be sent to government agencies for investigation
But Anil Ambani’s lawyers have said that this action is unfair. They claim that he was a non-executive director at that time and was not managing the company daily. His team also says that he was not given a chance to explain himself before this step was taken by SBI.
Right now, RCom is going through the insolvency process. This means the company is in big debt and is trying to come up with a plan to pay back banks and restart business. Because of this, no one can take legal action against RCom until the NCLT (National Company Law Tribunal) gives permission. The NCLT is looking at RCom’s case and will decide the next steps.
This is not the first time a bank has taken action like this. Canara Bank also said earlier that RCom’s loans were a fraud. Many banks are now being more careful after past cases like Vijay Mallya and Nirav Modi, where banks lost large amounts of money.
This case also raises questions about how company money is used and how much control directors like Anil Ambani have, even if they are not involved daily. It shows that banks and the government now want more honesty and transparency in big loans.
If the RBI agrees with SBI’s action, Anil Ambani could be banned from borrowing for 5 years. Government agencies might also start a criminal case. At the same time, everything depends on what the NCLT decides about RCom’s future.
In short, this case is a big moment in India’s banking sector. It shows that banks will not stay quiet when loan money is misused. It also shows that even big names like Anil Ambani can be called out if rules are broken. What happens next will be very important for the company, the banks, and India’s business world.