Anil Ambani-Era RCom Declared ‘Fraud’ by SBI: Know the Background, Context & What Lies Ahead for Investors
While Anil Ambani is no longer part of RCom, SBI’s fraud tag concerns loans sanctioned during his leadership
In a significant development, Reliance Communications Limited (RCOM) has informed stock exchanges that it has received a letter from the State Bank of India (SBI), classifying the company’s loan account as “fraud.” The communication, dated June 23, 2025, and received by the company on June 30, 2025, also states that SBI intends to report the name of Shri Anil Dhirajlal Ambani, former director of the company, to the Reserve Bank of India (RBI) as per prevailing regulatory guidelines.
This disclosure has been made in accordance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows the format prescribed by SEBI's November 2024 circular for fraud-related disclosures.
Background and Context
RCOM is currently undergoing corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code, 2016 (IBC). The resolution process commenced in June 2019, and since then, all powers of the Board of Directors have been vested with the Resolution Professional, Mr. Anish Niranjan Nanavaty, as appointed by the National Company Law Tribunal (NCLT), Mumbai Bench.
According to the company, the loans mentioned in SBI’s letter relate to a period prior to the initiation of the insolvency process. These liabilities, as per the IBC, must be addressed either through an approved resolution plan or during liquidation. A resolution plan has already been approved by the Committee of Creditors (CoC) and is currently pending final approval by the NCLT.
Legal Immunities and Protections
RCOM has emphasized that under Section 14 of the IBC, legal proceedings, including execution of judgments or initiation of fresh cases against the company, are prohibited during the CIRP. Furthermore, Section 32A of the IBC grants immunity to the corporate debtor—RCOM in this case—from any offences committed prior to the insolvency process, provided that the resolution plan leads to a change in control or management.
This statutory safeguard ensures that once the resolution plan is approved by the NCLT, RCOM will not be held liable for past offences or fraudulent transactions—even those potentially uncovered by forensic audits.
Additionally, Section 238 of the IBC overrides any conflicting provisions in other laws, thereby reinforcing the company’s legal position that the SBI classification will not materially affect the ongoing insolvency proceedings or its financials.
Estimated Financial Impact
While SBI’s letter may raise concerns for stakeholders, RCOM has categorically stated that there will be no immediate financial impact. The company reiterated that legal advice is being sought to evaluate the next steps following SBI’s communication.
Although the exact amount involved in the alleged fraud was not disclosed in RCOM’s stock exchange filing, it is available in SBI’s letter, which was annexed to the company’s disclosure.
What Lies Ahead
As per the disclosure, SBI will proceed with classifying the account as fraudulent and report the name of Shri Anil Ambani, who served as a director during the period in question, to the RBI. However, RCOM itself, shielded by provisions of the IBC, is unlikely to face direct legal or financial repercussions.
RCom's share price is trading below Rs 2, classifying it as a penny stock.
Disclaimer: The article is for informational purposes only and not investment advice.