CBI files ₹2,929-crore bank loan fraud case against RCom, Anil Ambani; searches their premises in Mumbai

The Central Bureau of Investigation (CBI) on Saturday (August 23, 2025) conducted searches at two locations in Mumbai after registering a case against Reliance Communications Limited (RCom), its then director Anil D. Ambani, and others, on the charge of causing a wrongful loss of ₹2,929.05 crore to the State Bank of India (SBI).

Based on a complaint lodged by a Mumbai branch of the SBI alleging criminal conspiracy, misrepresentation of facts for getting credit facilities sanctioned in favour of RCom, and misuse/diversion of loan funds, the agency instituted the case on August 21.

According to the first information report (FIR), the accused persons also indulged in potential routing of loan funds, inter-company loan transactions, misuse of sales invoice financing, discounting of bills of RCom by Reliance Infratel Limited, movement of funds through inter-corporate deposits, write-off of capital advances given to Netizen Engineering Private Limited, a group company of Reliance ADA Group, and creation/write-off of fictitious debtors, etc.

Residence searched

The CBI obtained search warrants from a special Mumbai court on August 22 and searched two locations – the official premises of RCom and residential premises of Mr. Ambani.

In its complaint, the bank alleged that the fraud came to light when a forensic auditor submitted its report on October 15, 2020, covering the period from April 2013 to March 2017. The account was classified as fraud in November 2020.

Established in December 2002, the company provided wireless, wireline and IT infrastructure services in India and abroad together with its subsidiary companies. After the entry of RJio with disruptive offers, RCom exited the consumer mobile service business in December 2017.

While the company was enjoying non-fund-based working capital facilities from a Mumbai branch of the SBI since 2004, it was sanctioned a fresh term loan of ₹1,500 crore in September 2012 to meet capital/operating expenditure and for repayment of existing liabilities. An additional short-term loan of ₹565 crore was sanctioned on August 8, 2016, to refinance scheduled liabilities of external commercial borrowings.

Declared NPA

The account was declared a non-performing asset (NPA) with retrospective effect from August 26, 2016, as per an observation raised in November 2017 during the Reserve Bank of India’s risk-based supervision. The outstanding then was ₹3,215 crore.

In view of a Supreme Court judgment dated March 27, 2023, in one case, the fraud classification in the account was reversed on September 2, 2023. As part of re-initiation of the process of fraud identification in the account, show-cause notices were issued to the borrower and its promoters/directors in November 2023, March and September 2024 for giving an opportunity of hearing in adherence to the principles of natural justice. Based on the findings, the account was reclassified as fraud on June 13, 2025.

The complaint noted that the company had a total outstanding of ₹40,185.55 crore as per the migration information sheet dated on May 29, 2018, with respect to the credit facilities extended by various banks and financial institutions.

It included ₹13,558.13 crore due to Chinese lenders -- CDB, CEXIM, and ICBC; ₹6,933.10 crore towards GCX Bonds, RCOM Bond, Standard Chartered Bank, VTB Capital PLC, Deutsche Bank, Doha Bank QSC, HSBC, Emirates NBD Bank PJSC Dubai, ICBC, and Ahli United Bank; and ₹19,694.33 crore in the case of 26 Indian lenders, also comprising the SBI, as per the FIR.

“Anil Ambani has been selectively singled out”

A spokesperson on behalf of Mr Ambani in a statement said, the search at Mr Ambani’s residence concluded early on Saturday afternoon and he has denied all allegations. 

The spokesperson said the complaint filed by State Bank of India (SBI) pertains to matters dating back more than 10 years. 

“At the relevant time, Mr. Ambani was a Non-Executive Director of the company, with no involvement in the day-to-day management. It is pertinent to note that SBI, by its own order, has already withdrawn proceedings against five other Non-Executive Directors. Despite this, Mr. Ambani has been selectively singled out,” he said.

“At present, Reliance Communications is being managed under the supervision of a Committee of Creditors, led by SBI and overseen by a Resolution Professional. The matter remains sub judice, pending before the NCLT and other judicial forums, including the Hon’ble Supreme Court, for the past six years,” he added. 

“Mr. Ambani has duly challenged SBI’s declaration before the competent judicial forum. Mr. Ambani strongly denies all allegations and charges, and will duly defend himself,” he further said.