

Why SBI Tags Reliance Communications as Fraudulent Borrower?
Anil Ambani, once among the top ten richest individuals in the world, now finds himself at the center of a storm of financial and legal troubles. From helming a thriving business empire to facing a ‘fraud’ label from India’s largest public sector lender—the State Bank of India (SBI)—his journey paints a vivid picture of a monumental corporate collapse.
Once celebrated as the dynamic force behind the Anil Dhirubhai Ambani Group (ADAG), the younger Ambani sibling is now associated with loan defaults, fund diversion allegations, insolvency proceedings, and regulatory bans both in India and abroad. The most recent and severe blow comes from SBI, which plans to classify Reliance Communications (RCom), the telecom company once led by Anil Ambani, as a ‘fraudulent borrower’.
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SBI’s Fraud Tag on Reliance Communications: The Latest Setback
In July 2025, SBI filed an official notice declaring RCom’s loan account as ‘fraud’, submitting details to the Reserve Bank of India (RBI). This move is likely to trigger similar actions from other lenders involved with RCom. Notably, Canara Bank had already labeled RCom as a ‘fraudulent borrower’ in September 2024.
According to SBI, Reliance Communications and its subsidiaries secured loans totaling ₹31,580 crore. A significant portion of these funds—44%—was reportedly used to repay financial obligations, while 41% was redirected to connected entities. Approximately ₹6,265 crore and ₹5,501 crore were traced to repayments not aligned with sanctioned purposes. SBI noted “a complex web of fund movements” and cited irregular accounting practices and book manipulation as evidence of misconduct.
The Decline of a Billion-Dollar Empire
Reliance Communications: From Telecom Giant to Insolvency
RCom, once a leading telecom player, is now undergoing insolvency proceedings. Although creditors have approved a resolution plan, it awaits a final verdict from the National Company Law Tribunal (NCLT). RCom’s fall was the first major dent in Anil Ambani’s credibility as a corporate leader.
Reliance Power: Legal Challenges Over Forged Documents
In May 2024, Reliance Power came under scrutiny when the Solar Energy Corporation of India (SECI) dismissed its chief for allegedly allowing the company to bid using forged bank documents. In November, the company faced a three-year ban from tenders, which was later lifted by the Delhi High Court after legal intervention.
Reliance Capital: Investigations Into Massive Financial Irregularities
Between 2018 and 2020, auditing firms Price Waterhouse Coopers (PWC) and Grant Thornton uncovered widespread irregularities in Reliance Capital’s financial dealings. PWC flagged suspicious transactions worth ₹12,751 crore, while Grant Thornton found ₹12,000 crore allegedly diverted through Reliance Housing Finance.
These findings triggered an investigation by the Securities and Exchange Board of India (SEBI). In addition to penalties and bans, Anil Ambani faced a ₹25 crore fine and a five-year ban from participating in securities markets, effective until August 2029.
Reliance Infrastructure: Insolvency Battle Over Energy Deal
Reliance Infrastructure (RInfra) faced an insolvency order in connection with a 2011 energy purchase agreement with Dhursar Solar Power Pvt Ltd (DSPPL). The dispute centered around an ₹88 crore default. RInfra contested the order, arguing it had paid ₹92.68 crore, including principal and interest. The case is now under review by the National Company Law Appellate Tribunal (NCLAT), with the next hearing scheduled for July 18, 2025.
SEBI Ban and Personal Bankruptcy in the UK
On the personal front, Anil Ambani’s financial struggles escalated in 2020, when he declared bankruptcy in a UK court, citing his inability to even afford legal fees. This followed a lawsuit by three Chinese banks—Industrial and Commercial Bank of China, China Development Bank, and the Export-Import Bank of China—over defaulted loans to RCom worth $925 million.
The London court found that Mr. Ambani had personally guaranteed the loans and ordered him to repay over $716 million, including interest and legal costs. These banks are now seeking recovery from Anil Ambani’s global assets.
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Anil Ambani’s Legal Response on Reliance Communications
In response to SBI’s fraud classification of Reliance Communication, Mr. Ambani’s legal team expressed shock over the ex-parte decision, claiming he had no opportunity to present his defense. The law firm emphasized that Anil Ambani was a non-executive director at the time and did not handle the day-to-day operations of RCom.
The lawyers argued that he had no direct involvement in financial decisions and demanded the bank withdraw the fraud label. So far, there has been no indication of SBI reconsidering its decision.