SBI classifies RCom, its promoter Anil Ambani as ‘fraud’, to lodge complaint with CBI: Minister

New Delhi: State Bank of India has classified Reliance Communications along with promoter director Anil D Ambani as ‘fraud’ and is also in the process of lodging complaint with CBI, Parliament was informed on Monday.

The entities were classified as fraud on June 13, 2025 in accordance with the RBI’s Master Directions on Fraud Risk Management and Bank’s Board-approved Policy on Classification, Reporting & Management of Frauds, Minister of State for Finance Pankaj Chaudhary said in a written reply in the Lok Sabha.

“On June 24, 2025, the bank reported classification of fraud to RBI, and is also in the process of lodging complaint with CBI,” he said.

Further, on July 1, 2025, as part of disclosure compliance, Resolution Professional of RCom informed the Bombay Stock Exchange regarding fraud classification by the bank.

The credit exposure of SBI in RCom includes, fund-based principal outstanding amount of Rs 2,227.64 crore along with the accrued interest and expenses with effect from August 26, 2016 and non-fund based Bank Guarantee of Rs 786.52 crore, he said.

RCom is undergoing Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016. The resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT), Mumbai on March 6, 2020, and NCLT approval is awaited.

The bank has also initiated Personal Insolvency Resolution Process under IBC against Anil D Ambani and the same is being heard by NCLT, Mumbai, he said. The bank had earlier classified the account and promoter Anil D Ambani as ‘fraud’ on November 10, 2020 and filed a complaint with the CBI on January 5, 2021.

However, he said, the complaint was returned in view of the ‘status quo’ order dated January 6, 2021 by the High Court, Delhi. Meanwhile, a Supreme Court judgement dated March 27, 2023 in State Bank of India & Others Vs Rajesh Agarwal & Others case mandated that lenders provide borrowers with an opportunity to represent before classifying their accounts as fraud.

Accordingly, he said, the fraud classification in the account was reversed by the bank on September 2, 2023.

The fraud classification process was re-run, and the account was again classified as ‘fraud’ after following the due process as per RBI circular dated July 15, 2024.