The Central Bureau of Investigation (CBI) has launched a major probe against industrialist Anil Ambani and his company Reliance Communications Ltd (RCOM) over allegations of a massive bank loan fraud of nearly ₹2,929 crore.
Officials confirmed that on Saturday, CBI teams conducted searches at multiple locations in Mumbai, including premises linked to RCOM and the residential property of Anil Ambani, chairman of the Reliance Anil Dhirubhai Ambani Group (ADAG). The investigation follows a detailed complaint by the State Bank of India (SBI), which accused the company of misusing funds and violating banking norms.
The Genesis of the Case
According to officials, the First Information Report (FIR) was registered on Thursday, after a complaint was formally lodged by SBI Deputy General Manager Jyoti Kumar. The bank alleged that Reliance Communications and its director Anil Ambani, in collusion with other unnamed individuals and officials, were involved in a criminal conspiracy to cheat SBI by misrepresenting facts to secure credit facilities.
The FIR mentions charges of criminal conspiracy, cheating, criminal breach of trust, and misconduct by public servants. The alleged fraud revolves around ₹2,929.05 crore, which SBI claims was misutilized or diverted instead of being used for the company’s stated business purposes.
Allegations in Detail
As per the CBI, the fraudulent activities included:
- Diversion of loan funds through inter-company transactions.
- Routing funds via subsidiaries such as Reliance Infratel Ltd.
- Misutilization of sales invoice financing and discounting of bills.
- Creation and subsequent write-off of fictitious debtors.
- Transfer of funds through inter-corporate deposits.
- Writing off capital advances given to Netizen Engineering Pvt Ltd, a group company of ADAG.
Officials say these irregularities were part of a larger pattern of financial mismanagement intended to siphon off funds, thereby causing huge losses to the bank.
SBI’s Complaint and RBI Classification Anil Ambani
The loan account of RCOM was officially classified as fraudulent in June 2025, under the Reserve Bank of India’s (RBI) Master Directions on Fraud Risk Management. SBI, following its internal policies, flagged the account and subsequently approached the CBI for further investigation.
In its regulatory filing, Reliance Communications acknowledged receiving a letter from SBI dated June 23, 2025, which officially communicated the classification of its loans as fraud.
Financial Exposure of SBI By Anil Ambani
In a recent Lok Sabha session, the Finance Ministry revealed the extent of SBI’s financial exposure to Reliance Communications. The bank’s outstanding included:
- ₹2,227 crore as principal fund-based exposure (with interest and expenses accumulated since August 2016).
- ₹786 crore in non-fund-based exposure through bank guarantees.
The company has already been undergoing the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC) 2016 for over six years.
Parallel Investigations by ED
The Enforcement Directorate (ED) is also probing the financial affairs of RCOM and its associated companies. Last month, ED officials conducted searches in Delhi and Mumbai at multiple premises linked to ADAG companies. These raids were part of a money-laundering investigation tied to alleged bank loan defaults and other suspected financial irregularities.
While ED’s probe focuses on potential violations of the Prevention of Money Laundering Act (PMLA), the CBI’s case is centered on the allegations of fraud and criminal conspiracy involving SBI’s loans.
Response from Reliance Group
So far, neither RCOM nor the Reliance Anil Dhirubhai Ambani Group has issued an official statement on the matter.
However, following the ED raids in July, a Reliance Group functionary clarified that Anil Ambani had resigned from RCOM’s board in 2019 and is currently not associated with any of the group’s listed companies.
The person further emphasized that RCOM has not been part of the Reliance Group for years and highlighted that the group currently only has two listed companies – Reliance Infrastructure Ltd and Reliance Power Ltd.
They also criticized SBI’s decision, noting that Anil Ambani was not given a personal hearing before the bank’s committee classified the loan account as fraud.
RCOM’s Insolvency Battle
Reliance Communications, once a leading telecom operator in India, has been under the CIRP framework since 2019. The company’s massive debt burden, combined with the telecom sector’s intense competition and regulatory challenges, pushed it into insolvency.
Several attempts were made to resolve its financial distress, including interest from firms in acquiring its assets. However, no successful resolution plan has yet materialized, leaving creditors including SBI with huge unpaid dues.
Broader Context – Rising Bank Loan Frauds
This case highlights a growing concern over corporate loan frauds in India. According to RBI data, banks have been struggling with large corporate defaults, misappropriation of loans, and misuse of credit facilities.
Public sector banks, in particular, have been under pressure to tighten credit assessment mechanisms and strengthen fraud detection systems. The SBI–RCOM case will likely draw significant attention to how loans were sanctioned and monitored during the period in question.
What’s Next?
The investigation is in its early stages. The CBI is expected to summon key executives, financial officers, and possibly Anil Ambani himself for questioning in the coming weeks.
Legal experts suggest the case could be prolonged given the complexities of forensic accounting, cross-border fund movements, and the overlap with insolvency proceedings. If proven guilty, the charges could lead to severe penalties under criminal law as well as corporate law provisions.
Impact on Anil Ambani’s Legacy
Anil Ambani, once among the world’s richest billionaires, has faced a steep financial decline over the past decade. The downfall of RCOM marked a major setback, and this new investigation further complicates his business legacy.
Industry watchers note that cases like these not only affect the individuals involved but also shake investor confidence in India’s corporate governance ecosystem.
The CBI’s action against Reliance Communications and Anil Ambani in the ₹2,929 crore SBI loan fraud case is a significant development in India’s financial and corporate sector. With both the CBI and ED investigating, and SBI pushing for accountability, the coming months will be crucial in determining whether this case sets a precedent for tackling large-scale loan frauds in the country.
For now, the matter remains under investigation, and all eyes are on the courts and agencies handling the case.
Disclaimer: This article is based on official reports, regulatory filings, and government disclosures. All individuals and companies named are presumed innocent until proven guilty by a court of law.
