Anil Ambani and the RCom Loan Fraud Case
RCom’s Rs.45,000 crore loan was declared fraudulent by SBI due to misuse of funds. Anil Ambani faces legal risks as RCom undergoes bankruptcy.
Anil Ambani, the younger brother of Mukesh Ambani—India’s richest man—was once one of the top names in Indian business. In 2005, the Reliance group was divided between the two brothers. Mukesh got the oil and gas business, while Anil took control of telecom, power, infrastructure, and financial services.
Anil launched Reliance Communications (RCom), which quickly became a major player in the telecom industry. At its peak, RCom had over 150 million customers and competed with big companies like Airtel and Vodafone. However, in 2016, everything changed when Mukesh Ambani’s Reliance Jio entered the market, offering very cheap data and free calling services. This move disrupted the telecom sector, and RCom began to face massive financial losses.
By 2019, RCom had taken on a huge amount of debt and was unable to repay it. The company filed for bankruptcy under the Insolvency and Bankruptcy Code (IBC), owing more than ?45,000 crore. Anil Ambani, as the former director and promoter of RCom, had signed many of the loan documents and was responsible for running the company when banks claimed their money was misused.
According to recent reports, RCom and its related companies had taken loans worth ?31,580 crore from various banks, including the State Bank of India (SBI). SBI has now officially marked these loans as “fraud.” An internal investigation by the bank revealed serious misuse of loan funds. A complex network of fund transfers was found between several Reliance Group companies.
The Fraud Identification Committee reported that ?13,667 crore—about 44% of the total—was used to repay existing loans and debts. Another ?12,692 crore—around 41%—was transferred to related companies, which was not allowed. Of this, ?6,265 crore went to repay other bank loans, and ?5,501 crore was moved to related firms without a clear reason. In another case, ?250 crore taken as a loan from Dena Bank to pay government dues was instead sent to Reliance Communications Infrastructure Ltd and then used to repay a foreign loan.
SBI had sent notices to Anil Ambani and RCom in December 2023, March 2024, and September 2024, asking them to explain how the loans were used. However, the bank was not satisfied with their replies. On 23 June 2025, SBI’s Fraud Committee officially labelled the loans as fraudulent, and on 30 June 2025, formal letters were sent to RCom and Anil Ambani.
When a loan is marked as fraud, the borrower and people linked to it cannot take new bank loans for at least five years. The bank must also inform the police or other authorities, which could lead to a criminal case. RCom has responded by saying that since it is already undergoing the bankruptcy process, any police action should be put on hold for now.
After the news became public, the stock prices of other Anil Ambani companies were also affected. Shares of Reliance Power fell by 4.8%, and Reliance Infrastructure dropped by 5%. This marks a sharp fall from grace for Anil Ambani, who was once seen as a rising star in Indian industry, but now finds himself facing serious financial and legal trouble.
