Cbi files ₹2 929 cr bank loan fraud case against rcom anil

Cbi files ₹2 929 cr bank loan fraud case against rcom anil

Probe agency institutes case on plaint from a Mumbai branch of SBI alleging criminal conspiracy, for getting credit facilities sanctioned in favour of RCom; searches official premises and residence.

The Central Bureau of Investigation (CBI) on Saturday conducted searches at two locations in Mumbai after registering a case against Reliance Communications Limited (RCom), its then director Anil D. Ambani, and others, on the charge of causing a wrongful loss of ₹2,929.05 crore to the State Bank of India (SBI).

Based on a complaint lodged by a Mumbai branch of the SBI alleging criminal conspiracy, misrepresentation of facts for getting credit facilities sanctioned in favour of RCom, and misuse/diversion of loan funds, the agency instituted the case on August 21.

The CBI obtained search warrants from a special Mumbai court on August 22 and searched two locations – the official premises of RCom and residential premises of Mr. Ambani.

In its complaint, the bank alleged that the fraud came to light when a forensic auditor submitted its report on October 15, 2020, covering the period from April 2013 to March 2017.

The account was classified as fraud in November 2020. Established in December 2002, the company provided wireless, wireline and IT infrastructure services in India and abroad together with its subsidiary companies. After the entry of RJio with disruptive offers, RCom exited the consumer mobile service business in December 2017.

While the company was enjoying non-fund-based working capital facilities from a Mumbai branch of the SBI since 2004, it was sanctioned a fresh term loan of ₹1,500 crore in September 2012 to meet capital/operating expenditure and for repayment of existing liabilities.

An additional short-term loan of ₹565 crore was sanctioned on August 8, 2016, to refinance scheduled liabilities of external commercial borrowings.

The account was declared a non-performing asset (NPA) with retrospective effect from August 26, 2016, as per an observation raised in November 2017 during the Reserve Bank of India’s risk-based supervision. The outstanding then was ₹3,215 crore.

In view of a Supreme Court judgment dated March 27, 2023, in one case, the fraud classification in the account was reversed on September 2, 2023. As part of re-initiation of the process of fraud identification in the account, show-cause notices were issued to the borrower and its promoters/directors in November 2023, March and September 2024 for giving an opportunity of hearing in adherence to the principles of natural justice. Based on the findings, the account was reclassified as fraud on June 13, 2025.

The complaint noted that the company had a total outstanding of ₹40,185.55 crore as per the migration information sheet dated May 29, 2018, with respect to the credit facilities extended by various banks and financial institutions.

A spokesperson on behalf of Mr. Ambani said in a statement that the searches at Mr. Ambani’s residence concluded early on Saturday afternoon and that he had denied all the allegations.

The spokesperson said the complaint filed by SBI pertained to matters dating back to more than 10 years.

‘Singled out’

“It is pertinent to note that SBI, by its own order, has already withdrawn proceedings against five other Non-Executive Directors. Despite this, Mr. Ambani has been selectively singled out,” he said.