Anil Ambani declared fraud by Bank of Baroda amid ongoing loan default and CBI-ED actions

September 6, 2025

Mumbai, Sep 5: Reliance Group Chairman Anil Ambani, who is facing action by ED and CBI in different loan fraud cases, has also been declared a fraud by Bank of Baroda. Earlier, State Bank of India (SBI) and Bank of India (BOI) have also declared Anil a fraud.

Reliance Communications (RCOM) said that the company received a letter from the bank regarding this on September 2. The bank had given the company a line of credit of Rs 1,600 crore and Rs 862.50 crore.

RCOM has not repaid ₹1,656 crore loan since 2017

Line of Credit (LoC) is a type of revolving credit that allows you to take and repay a loan from a bank or financial institution up to a fixed limit as per your need. This is different from the normal loan system in which you get a lump sum loan amount.

According to the bank, RCOM had taken a loan of Rs 2,462.50 crore, out of which Rs 1,656.07 crore is still outstanding as of August 28. This account has been a non-performing asset (NPA) since June 5, 2017. If a person or company does not pay the loan installment or interest for 90 days or more, then that loan becomes an NPA.

Reliance Communications said- the matter is 12 years old

A Reliance Communications spokesperson said that this case is 12 years old. Anil Ambani was only a non-executive director from 2006 to 2019. He had nothing to do with the company’s daily operations or decisions. All the allegations are baseless, we will take recourse to law.

At the same time, Reliance Power informed the stock market that the action of Bank of Baroda will not have any effect on its trade operations and financial performance. Anil Ambani has not been on the board of Reliance Power for more than three and a half years.

What does the law say

Under banking laws, as soon as an account is declared fraudulent, the case is sent to enforcement agencies. No new funds will be issued to the borrower for the next 5 years. Reliance Communications has a total debt of ₹40,400 crore (till March 2025). It has been in the bankruptcy process since 2019. The SBI-led creditor committee approved the resolution plan in 2020, but the matter is in court.

CBI registered the case 13 days ago

Recently, CBI has registered a case against Anil Ambani’s company Reliance Communications (RCOM) in a bank fraud case of Rs 2,929 crore. CBI also raided the office of Reliance Communication Limited in Mumbai and Anil Ambani’s house on 23 August. This fraud is related to State Bank of India (SBI). Meanwhile, Anil Ambani rejected all the allegations against him.

Apart from this, the bank has also initiated personal bankruptcy proceedings against Anil Ambani, which is pending in Mumbai NCLT. On July 23, ED had also raided more than 35 locations related to Anil Ambani’s Reliance Group. The raid was done in the Rs 3,000 crore loan fraud case taken from Yes Bank.