Bank of India Declares RCom and Anil Ambani Accounts ‘Fraudulent’; CBI Widens Probe

Mumbai, Aug 2025 — The financial troubles of Reliance Communications (RCom) and its promoter Anil Ambani deepened further after the Bank of India (BOI) classified the company’s loan accounts, along with those of Ambani and Reliance Telecom, as ‘fraudulent’. The development comes just days after the State Bank of India (SBI) issued a similar declaration against the company.

In a filing to the stock exchanges on Sunday, RCom said it received a BOI letter dated August 8, which was delivered on August 22. The bank alleged diversion of funds and violation of loan terms, citing long-standing defaults.

BOI Notice Details

According to the BOI communication, the loan accounts of RCom, Anil Dhirajlal Ambani, and Manjari Ashik Kacker were tagged as fraud for an outstanding amount of ₹724.78 crore. The bank said the account was declared non-performing (NPA) on June 30, 2017. Despite repeated reminders, the borrowers and guarantors allegedly failed to make repayments.

“The account of the borrower turned NPA on 30.06.2017 with outstanding of ₹724.78 crore. The Bank has been following up with the Borrowers and Guarantors for repayment of dues; however, they have failed and neglected to make repayment,” BOI said in its notice, excerpts of which were included in RCom’s filing.

BOI also issued a similar notice to Reliance Telecom Limited, declaring its loan account as fraudulent in connection with a default of ₹51.77 crore. Directors Grace Thomas and Satheesh Seth were named, along with others including Gautam Bhailal Doshi, Dagdulal Kastruchand Jain, and Prakash Shenoy.

Collectively, RCom and its subsidiaries are understood to have borrowed nearly ₹31,580 crore from a consortium of banks.

Parallel CBI Investigation

Meanwhile, the Central Bureau of Investigation (CBI) has intensified its probe into alleged financial irregularities by the company and its promoter. On Saturday, CBI teams carried out searches at two locations in Mumbai — Anil Ambani’s residence and RCom’s corporate office.

This action follows the registration of a fresh case of alleged bank fraud worth ₹2,929.05 crore on August 21, based on a complaint filed by SBI. The complaint accused RCom, Ambani, unidentified public servants, and others of cheating the bank through misrepresentation to secure loans.

According to investigators, funds were allegedly diverted through inter-company loan transactions, inter-corporate deposits, misuse of sales invoice financing, and discounting of RCom bills by Reliance Infratel. The CBI also highlighted the routing of funds through group entities and the writing off of capital advances extended to Netizen Engineering Pvt. Ltd., a Reliance ADA Group company.

Ambani Denies Allegations

Responding to the developments, a spokesperson for Anil Ambani dismissed the allegations, terming them “baseless”. The statement said Ambani would “duly defend himself” against all charges.

The twin actions by BOI and the CBI mark a significant escalation in the scrutiny surrounding RCom’s financial dealings, signaling mounting legal and regulatory challenges for the debt-ridden telecom firm and its promoter.