Bank of Baroda declares RCom, Anil Ambani’s loan accounts as ‘fraud’

Move adds to mounting troubles for Reliance Communications amidst insolvency proceedings

In a major development, Bank of Baroda (BoB) has declared the loan accounts of Reliance Communications (RCom) and its former Director Anil Ambani as ‘fraud’. The classification pertains to loans taken before the company entered the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

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RCom, now managed by Resolution Professional Anish Niranjan Nanavaty, has clarified that these loans must be resolved through a resolution plan or liquidation under IBC rules. A plan approved by creditors is currently awaiting clearance from the National Company Law Tribunal (NCLT).

Anil Ambani, who resigned in 2019, has strongly denied the charges. A spokesperson stated that he was only a Non-Executive Director from 2006 to 2019, had no role in daily operations, and termed the move “selective and delayed” action dating back to 2013.

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Meanwhile, the Enforcement Directorate (ED) is investigating alleged loan fraud across Ambani group entities, involving nearly ₹17,000 crore. The ED has sought details from multiple banks, including Reliance Housing Finance, RCom, and Reliance Commercial Finance.

BoB has said it will report the fraud classification to the Reserve Bank of India (RBI) and other authorities, in compliance with RBI’s Fraud Risk Management guidelines. This follows similar actions by SBI in June and Bank of India in August, both of which flagged RCom’s loan accounts as fraudulent.

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As insolvency proceedings continue, the development raises serious questions about lender recoveries and the broader challenge of tackling non-performing assets in India’s banking sector.

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