**SBI Classifies Reliance Communications and Anil D Ambani as ‘Fraud’**
State Bank of India (SBI) has officially classified Reliance Communications and its promoter director, Anil D Ambani, as ‘fraud.’ This classification was communicated to Parliament on Monday, with the Minister of State for Finance, Pankaj Chaudhary, stating that the designation was made on June 13, 2025, in line with the Reserve Bank of India’s (RBI) Master Directions on Fraud Risk Management and the bank’s own policies.
On June 24, 2025, SBI reported this classification to the RBI and is currently in the process of filing a complaint with the Central Bureau of Investigation (CBI). Additionally, on July 1, 2025, the Resolution Professional of Reliance Communications informed the Bombay Stock Exchange about the fraud classification as part of compliance requirements.
SBI’s credit exposure to Reliance Communications includes a fund-based principal outstanding of ₹2,227.64 crore, along with accrued interest and expenses since August 26, 2016, and a non-fund-based Bank Guarantee of ₹786.52 crore. Reliance Communications is undergoing a Corporate Insolvency Resolution Process under the Insolvency and Bankruptcy Code, 2016, with a resolution plan approved by the Committee of Creditors and submitted to the National Company Law Tribunal (NCLT) in Mumbai on March 6, 2020, pending approval.
Furthermore, SBI has initiated a Personal Insolvency Resolution Process against Anil D Ambani, which is also being heard by the NCLT in Mumbai. Previously, the bank had classified the account and Anil D Ambani as ‘fraud’ on November 10, 2020, and filed a complaint with the CBI on January 5, 2021. However, this complaint was returned due to a ‘status quo’ order from the Delhi High Court.
A Supreme Court ruling on March 27, 2023, in the case of State Bank of India & Others Vs Rajesh Agarwal & Others, mandated that lenders must provide borrowers an opportunity to present their case before classifying accounts as fraud. Following this, SBI reversed the fraud classification on September 2, 2023, but subsequently reclassified the account as ‘fraud’ after adhering to the due process outlined in the RBI circular dated July 15, 2024.
In response to another inquiry, Minister Chaudhary stated that there are no current proposals to waive outstanding agricultural loans under consideration by the Union Government. However, he noted that the government has implemented various measures to support farmers, including timely credit through the Kisan Credit Card (KCC) scheme, which offers crop loans of up to ₹3 lakh at subsidized interest rates.
**FAQ**
**Q: What led to SBI classifying Reliance Communications as ‘fraud’?**
A: SBI classified Reliance Communications and Anil D Ambani as ‘fraud’ based on the RBI’s guidelines and after following due process, including a Supreme Court ruling that required lenders to allow borrowers to present their case.
