The State Bank of India (SBI) has officially declared the loan account of Reliance Communications Ltd. (RCom) as ‘fraud’, citing irregularities dating back to August 2016. In an exchange filing, SBI also announced that it will report the name of Anil Dhirajlal Ambani — former director of RCom and head of the Reliance Group — to the Reserve Bank of India (RBI), in accordance with regulatory norms that require naming key personnel involved in fraudulent accounts.

RCom, once a major player in India's telecom sector, is currently undergoing corporate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC). The company stated that a resolution plan has already been approved by its creditors and is awaiting final approval from the National Company Law Tribunal (NCLT).

As per RBI guidelines, banks must notify the RBI within seven days of classifying an account as fraud and file a complaint with the Central Bureau of Investigation (CBI) within 30 days if the amount involved exceeds ₹1 crore. This development could lead to further regulatory scrutiny and potential investigations.

RCom highlighted that all management responsibilities currently lie with the court-appointed resolution professional, as its board remains suspended during the insolvency process. No official response has yet been issued by either SBI or Anil Ambani.

In a significant development, the State Bank of India (SBI) has classified the loan account of Reliance Communications Ltd. (RCom) as ‘fraud’, marking a major escalation in the troubled telecom company's financial woes. The declaration pertains to irregular transactions dating back to August 2016. Alongside this, SBI will also report Anil Dhirajlal Ambani — former RCom director and head of the Anil Ambani-led Reliance Group — to the Reserve Bank of India (RBI), as per regulatory requirements.

The move comes while RCom is under the corporate insolvency resolution process (CIRP), with a resolution plan already approved by creditors and awaiting National Company Law Tribunal (NCLT) clearance. Under RBI’s fraud classification guidelines, any fraud involving over ₹1 crore requires banks to report the case to the Central Bureau of Investigation (CBI) within 30 days of informing the RBI.

This action could open the door to further regulatory and legal consequences. As per RCom’s official statement, the company is currently managed by a resolution professional appointed by the NCLT, and all powers of the board, including those of Ambani, are suspended.

Neither SBI nor Anil Ambani has issued a public statement following the announcement. Anil Ambani, the younger brother of Mukesh Ambani, had led RCom during the period under investigation.