Trouble continues to mount for businessman Anil Ambani as the Bank of India (BoI) has now officially declared Reliance Communications (RCom) and him as ‘fraud’ borrowers. This comes soon after the State Bank of India (SBI) took similar action, further intensifying the legal and financial woes surrounding the debt-ridden company.
According to reports, Bank of India’s classification follows a forensic audit that revealed alleged irregularities and fund diversion. The move is part of a broader crackdown by public sector banks to address non-performing assets (NPAs) and ensure accountability in high-profile corporate loan defaults.
Reliance Communications, once a leading telecom operator in India, has been under heavy debt for years. The company filed for bankruptcy in 2019 after failing to service its loans, leaving creditors with thousands of crores in unpaid dues. Anil Ambani, who personally guaranteed some of the loans, has faced increasing scrutiny as banks pursue recovery actions.
Industry experts note that the ‘fraud’ tag by multiple banks could have severe implications for Ambani and RCom, including restrictions on raising fresh funds, ongoing investigations by enforcement agencies, and potential criminal proceedings.
While Ambani has maintained that the downfall of Reliance Communications was due to market disruptions and intense competition in the telecom sector, banks and regulators have pushed forward with their actions to protect public money and hold defaulters accountable.
With two major state-run banks — SBI and BoI — now categorizing RCom and Anil Ambani as ‘fraud,’ the case is expected to draw closer attention from investigating agencies and financial watchdogs in the coming months.