Bank of Baroda Declares Anil Ambani, RCom Loan Accounts as ‘Fraud’

New Delhi – September 5, 2025: In a major development in India’s banking and corporate sector, Bank of Baroda has officially classified the loan accounts of Reliance Communications Ltd. (RCom) and its former director, Anil Ambani, as fraud, according to a recent exchange filing.

Anil Ambani

Loans Taken Before Insolvency Proceedings

The classification pertains to loans disbursed before RCom entered the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016.

Currently, RCom is under the control of resolution professional Anish Niranjan Nanavaty, with all financial and operational matters falling under insolvency proceedings. The company emphasized that the loans in question are to be addressed through the resolution plan or potential liquidation under the IBC.

Anil Ambani’s Response

A spokesperson for Anil Ambani clarified that he served only as a Non-Executive Director of RCom from its inception in 2006 until his resignation in 2019, with no involvement in the company’s daily operations or decision-making.

“After an inordinate lapse of more than 10 years, select lenders have chosen to initiate proceedings in a staggered and selective manner targeting Ambani. He categorically denies all allegations and will pursue all legal remedies,” the spokesperson said.

Broader Banking Sector Action

This decision by Bank of Baroda comes after other major lenders also took similar steps:

• In June 2025, the State Bank of India (SBI) declared RCom’s loan accounts fraudulent.

• On August 24, 2025, Bank of India also categorized RCom’s loan accounts as fraud and named Anil Ambani, citing alleged fund diversion and violation of loan conditions.

Enforcement Directorate Investigation

The Enforcement Directorate (ED) is currently investigating alleged loan fraud across Ambani-led entities, including Reliance Housing Finance, Reliance Communications, and Reliance Commercial Finance. The estimated exposure in the case is nearly ₹17,000 crore.

The ED has reportedly sought details from 12–13 banks regarding disbursed loans, repayment defaults, and possible fund diversion.

Bank of Baroda’s Regulatory Reporting

Bank of Baroda confirmed it would report the fraud classification to all relevant authorities, including the Reserve Bank of India (RBI), in line with the RBI’s Master Directions on Fraud Risk Management in Commercial Banks and All India Financial Institutions.

What Lies Ahead for RCom

While a resolution plan for RCom has already been approved by its Committee of Creditors, the plan is still awaiting clearance from the National Company Law Tribunal (NCLT).

RCom has highlighted that during insolvency proceedings, it remains legally protected from new or ongoing suits, judgments, or enforcement actions, as per the IBC framework.

Implications for Indian Banking

This move further underscores the Indian banking sector’s intensified efforts to tackle non-performing assets (NPAs) and identify potential frauds in the corporate lending ecosystem. The classification of RCom’s loans as fraud by multiple leading banks could significantly impact the outcome of its insolvency resolution.