Overview

• SBI’s Fraud Identification Committee ruled that Reliance Communications failed to justify deviations from loan terms and irregular account conduct, leading to the fraud classification.
• Under RBI master directions, the bank must inform the central bank within seven days and lodge a CBI complaint within 30 days for loans above ₹1 crore after declaring an account fraudulent.
• Reliance Communications is under a corporate insolvency resolution process with its creditor-approved plan awaiting National Company Law Tribunal approval and shielded from pre-CIRP liabilities under Section 32A of the IBC.
• SBI alleges promoters manipulated books through fictitious entries and routed funds across related entities to misappropriate bank loans instead of conducting genuine business transactions.
• Anil Ambani’s legal team has petitioned to withdraw the fraud tag, contending that SBI acted ex parte without affording him a personal hearing or full disclosure of evidentiary material.