After taking cognisance of Reliance Communications’ response, SBI concluded the company could not explain non-adherence to terms and conditions of the loan.
The company also did not explain non-adherence to irregularities in conduct of account to the bank’s satisfaction.Hence, SBI’s fraud identification committee decided to classify the account as “fraud”.
The bank will take action to report the names of Reliance Communications and Anil Ambani to the Reserve Bank of India (RBI).
In November 2024, Canara Bank too had classified Reliance Communications’ account as “fraud”.Later, in February 2025, the Bombay High Court stayed Canara Bank’s move, citing lack of borrower hearing as per RBI guidelines.
What Reliance Communications said
Reliance Communications said the company is under corporate insolvency resolution process (CIRP) since 2019. A resolution plan has been approved by creditors and awaits final approval by the National Company Law Tribunal (NCLT).
The credit facilities or loans referred to in the SBI letter, dated June 23, 2025, pertain to the period prior to the CIRP, it said. These are required to be necessarily resolved as a part of a resolution plan or in liquidation, under the Insolvency and Bankruptcy Code (IBC).
During the CIRP, the company is protected from the institution, continuation of any suits, proceedings against the company, Reliance Communications said.
By virtue of protection available under Section 32A of IBC, upon the approval of the resolution plan by the NCLT, the company is to have immunity against any liability for any purported offences committed prior to the commencement of the CIRP, it said.
The company added that legal advice is being sought on the way forward with regards to the recent development.
First Published: Jul 2, 2025 8:31 AM IS
