Why Did SBI Classify RCom and Anil Ambani as Fraud?
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Synopsis
In a significant development, Minister of State for Finance, Pankaj Chaudhary, revealed that SBI has labeled RCom and Anil Ambani as 'Fraud'. This decision aligns with RBI regulations and has triggered a CBI complaint. Stay tuned as we explore the implications of this classification and the ongoing legal battles.
Key Takeaways
- SBI classifies RCOM and Anil Ambani as Fraud.
- Complaint to CBI is underway.
- RCOM is undergoing Corporate Insolvency Resolution.
- SBI's credit exposure is significant.
- Legal implications are ongoing.
New Delhi, July 22 (NationPress) The Minister of State for Finance, Pankaj Chaudhary, announced in Parliament that the State Bank of India (SBI) has categorized Reliance Communications Limited (RCOM) and its Promoter Director Anil D. Ambani as “Fraud” following the Reserve Bank of India’s Master Directions on Fraud Risk Management and the bank's internal fraud classification policy. The bank is currently preparing to lodge a complaint with the Central Bureau of Investigation (CBI), the minister disclosed.
“On June 24, 2025, the bank informed the RBI about the fraud classification and is also in the process of filing a complaint with the CBI,” Chaudhary stated in a written response to a query in the Lok Sabha.
Additionally, on July 1, 2025, in compliance with disclosure regulations, the Resolution Professional of RCOM notified the Bombay Stock Exchange about the bank's fraud classification, the minister added.
“The credit exposure to SBI in this account comprises a fund-based principal outstanding of Rs. 2,227.64 crore, along with accrued interest and expenses since August 26, 2016, and a non-fund based Bank Guarantee of Rs. 786.52 crore,” he revealed.
RCOM is currently undergoing the Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016 (IBC). The resolution plan was accepted by the Committee of Creditors and submitted to the National Company Law Tribunal (NCLT) in Mumbai on March 6, 2020, and is awaiting approval, Chaudhary further stated.
The bank has also initiated a Personal Insolvency Resolution Process against Anil Ambani under the IBC, which is currently being heard by the NCLT in Mumbai, he noted.
Previously, the bank classified the account and Anil D. Ambani as “Fraud” on November 10, 2020, and filed a complaint with the CBI on January 5, 2021. However, the complaint was returned due to a status quo order issued by the Delhi High Court on January 6, 2021, the minister elaborated.
In the meantime, the Supreme Court ruling dated March 27, 2023, in Civil Appeal No. 7300-7307 of 2022 (State Bank of India & Others Vs. Rajesh Agarwal & Others) required lenders to allow borrowers a chance to present their case before labeling accounts as fraudulent. As a result, the bank reversed its fraud classification on September 2, 2023, he explained.
Following this, the fraud classification process was re-evaluated, and the account was once again designated as “Fraud” after adhering to the due procedures as outlined in the RBI circular dated July 15, 2024
Point of View
It is essential to approach the SBI-RCOM situation with a commitment to factual reporting. The classification of RCOM and Anil Ambani as 'Fraud' reflects the stringent measures banks are adopting to mitigate financial risks. The ongoing litigation and regulatory compliance will be closely monitored as they unfold, ensuring transparency for all stakeholders involved.
NationPress
22/07/2025
Frequently Asked Questions
What prompted SBI to classify RCOM as Fraud?
SBI classified RCOM as Fraud in compliance with the Reserve Bank of India's Master Directions on Fraud Risk Management and its internal policies.
What is the current status of RCOM's insolvency process?
RCOM is undergoing the Corporate Insolvency Resolution Process, with a resolution plan submitted to the National Company Law Tribunal awaiting approval.
What are the implications of the classification for Anil Ambani?
Anil Ambani is facing a Personal Insolvency Resolution Process initiated by SBI, which is being heard by the NCLT in Mumbai.
How did the Supreme Court affect SBI's classification of Fraud?
The Supreme Court mandated that borrowers must be given a chance to represent themselves before accounts can be labeled as Fraud, leading to a temporary reversal of the classification.
What is SBI's total exposure to RCOM?
SBI's credit exposure to RCOM includes a principal outstanding amount of Rs. 2,227.64 crore and a Bank Guarantee of Rs. 786.52 crore.
