SBI labels Reliance Communications’ loan as fraud

New Delhi

The State Bank of India (SBI) has officially decided to classify Reliance Communications’ loan account as “fraud”, according to a stock exchange filing by the company. This decision relates to loans dating back to August 2016.

Reliance Communications shared that it received a letter from SBI on June 30, 2025, addressed to the company and its former director, Anil Ambani. In the letter, SBI stated it would report the loan account as fraud and also report Anil Ambani’s name to the Reserve Bank of India (RBI) as per current guidelines.

Reliance Communications, which is part of the Anil Ambani-led Reliance Group, is already going through insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) since 2016. The company said that a resolution plan has been approved by its committee of creditors and is now waiting for approval from the National Company Law Tribunal (NCLT) in Mumbai.

The loans SBI referred to in its letter are from before the insolvency process began. According to the company, these loans must be settled through the approved resolution plan or in liquidation if necessary.

SBI had earlier issued show-cause notices to the company in December 2023, March 2024, and again in September 2024. However, Reliance Communications reportedly failed to give satisfactory answers on why it violated loan terms and did not address concerns about irregularities in its accounts.

This latest move by SBI marks a major step in dealing with the troubled telecom company’s large debt and could impact the final resolution process going forward.