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Reliance Communication loan account classified as 'fraud' by SBIReliance Communications said the company is under corporate insolvency resolution process (CIRP) since 2019. A resolution plan has been approved by creditors and awaits final approval by the National Company Law Tribunal (NCLT).By Ritu Singh   July 2, 2025, 8:51:12 AM IST (Updated)2 Min ReadIndia's largest lender, State Bank of India (SBI) has classified the loan account of Anil Ambani's Reliance Communications as "fraud".

In a letter dated June 23, 2025, SBI said that it issued a show cause notice to the company via letters in December 2023, March 2024 and September 2024.

After taking cognisance of Reliance Communications' response, SBI concluded the company could not explain non-adherence to terms and conditions of the loan.

The company also did not explain non-adherence to irregularities in conduct of account to the bank's satisfaction.

Hence, SBI's fraud identification committee decided to classify the account as "fraud".

The bank will take action to report the names of Reliance Communications and Anil Ambani to the Reserve Bank of India (RBI).

In November 2024, Canara Bank too had classified Reliance Communications'  account as "fraud".

Later, in February 2025, the Bombay High Court stayed Canara Bank's move, citing lack of borrower hearing as per RBI guidelines.

What Reliance Communications said

Reliance Communications said the company is under corporate insolvency resolution process (CIRP) since 2019. A resolution plan has been approved by creditors and awaits final approval by the National Company Law Tribunal (NCLT).

The credit facilities or loans referred to in the SBI letter, dated June 23, 2025, pertain to the period prior to the CIRP, it said. These are required to be necessarily resolved as a part of a resolution plan or in liquidation, under the Insolvency and Bankruptcy Code (IBC).

During the CIRP, the company is protected from the institution, continuation of any suits, proceedings against the company, Reliance Communications said.

By virtue of protection available under Section 32A of IBC, upon the approval of the resolution plan by the NCLT, the company is to have immunity against any liability for any purported offences committed prior to the commencement of the CIRP, it said.

The company added that legal advice is being sought on the way forward with regards to the recent development.Continue ReadingFirst Published: Jul 2, 2025 8:31 AM ISTCheck out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!TagsReliance CommunicationsSBIshare market today