SBI Classifies Reliance Communications Loan As Fraud; Names Anil Ambani To RBIS

State Bank of India has classified Reliance Communications Ltd.'s loan account as fraud, citing fund diversion and manipulation of accounts in a 2016 case, the telecom company said in an exchange filing Tuesday.

SBI’s fraud identification committee found that the company’s management had misappropriated funds by manipulating books of accounts. The bank will also report the name of former director Anil Ambani to the Reserve Bank of India.

In October, Union Bank of India had taken a similar step, declaring the company’s former promoters and directors as fraudsters.
Reliance Communications, which is currently undergoing corporate insolvency resolution, said the SBI classification will not affect the company due to legal protections under the process.

A resolution plan has already been approved by the committee of creditors and is awaiting clearance from the National Company Law Tribunal in Mumbai.

The company added that it is seeking legal advice on the next steps.