Summary:
Reliance Communications Ltd. (RCOM) has disclosed that Bank of Baroda has classified the loan accounts of the company and its promoter, Anil Ambani, as fraudulent. The bank is required to report the matter to the Reserve Bank of India (RBI) and other regulatory bodies. While RCOM is currently under insolvency proceedings, the move could have implications for Anil Ambani personally.
Details of the Classification
- Date of Letter: September 2, 2025
- Date Received by RCOM: September 3, 2025
- Disclosure Filing: September 4, 2025 (under SEBI LODR Regulation 30)
- Authority: Bank of Baroda, acting in line with RBI’s Master Directions on Fraud Risk Management (2024)
Bank of Baroda has classified the loan accounts of both Reliance Communications and Anil Dhirubhai Ambani (erstwhile director) as fraudulent. The bank is required to notify RBI and pursue further regulatory actions.
Reliance Communications’ Position
RCOM clarified that:
- It is already under the Corporate Insolvency Resolution Process (CIRP).
- A resolution plan approved by its committee of creditors is awaiting clearance from the National Company Law Tribunal (NCLT), Mumbai Bench.
- The loans mentioned by Bank of Baroda relate to the period prior to CIRP initiation.
- Under Section 32A of the Insolvency and Bankruptcy Code (IBC), 2016, once the resolution plan is approved, the company will receive immunity from prosecution for past offences.
Additionally, the resolution professional has conducted an audit of avoidance transactions, with applications already filed before the NCLT.
Legal Review and Next Steps
RCOM has said it is seeking legal advice on the development. Any corrective actions will be guided by:
- The resolution professional,
- Directions from the NCLT, and
- Provisions of the IBC framework.
Implications for Anil Ambani
Unlike RCOM, Anil Ambani has also been individually named in the bank’s classification. His loan account has been marked fraudulent, which will be reported to regulators as mandated under RBI’s fraud management rules.
This raises the possibility of further scrutiny and legal consequences for Ambani, even though RCOM as a corporate debtor may eventually gain immunity under the IBC.
Disclaimer:
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