Public sector lender Bank of Baroda has officially marked the company’s loan accounts, along with those linked to its former director Anil Ambani, as fraudulent. The declaration was made through an exchange filing and relates to loans taken before the troubled telecom firm entered the corporate insolvency resolution process (CIRP). This move adds another chapter to the financial troubles of RCom, once a leading name in India’s telecom sector, now struggling under massive debt and bankruptcy proceedings.
Loans Under Scrutiny Pre-Date Insolvency Process
According to RCom, the loans flagged by Bank of Baroda were issued before the company went into insolvency under the Insolvency and Bankruptcy Code (IBC), 2016. The firm has clarified that these liabilities must be settled either through an approved resolution plan or, if required, liquidation. Currently, RCom’s operations are overseen by a resolution professional, Anish Niranjan Nanavaty, as directed by the National Company Law Tribunal (NCLT).
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Anil Ambani Distances Himself
Anil Ambani, who resigned as RCom’s director in 2019, has rejected the allegations. A spokesperson for the businessman stressed that Ambani was only a Non-Executive Director since the company’s inception in 2006 and was never involved in daily operations or decision-making.
“It is pertinent to note that Mr. Anil D. Ambani served only as a Non-Executive Director on the Board of RCom from inception in 2006 until his resignation from the Board in 2019… After an inordinate lapse of more than 10 years, select lenders have now chosen to initiate proceedings in a staggered and selective manner targeting Ambani,” the spokesperson stated. The spokesperson further added: “Anil D. Ambani categorically denies all allegations and charges and shall pursue remedies available to him in accordance with legal advice.”
Legal Protection Under CIRP
RCom has emphasized that under the CIRP, it is shielded from new lawsuits or proceedings, including enforcement of judgments or decrees against it. The company said it is reviewing Bank of Baroda’s decision with legal experts and will respond appropriately. A resolution plan for RCom has already been cleared by its committee of creditors and is awaiting NCLT’s approval.
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Wider Investigations Into Alleged Loan Fraud
The Bank of Baroda’s action is not an isolated move. Earlier this year, the State Bank of India (SBI) and Bank of India had also declared RCom’s loan accounts as fraud, with the latter explicitly naming Anil Ambani.
Meanwhile, the Enforcement Directorate (ED) is probing alleged loan fraud across Ambani-linked firms, including Reliance Housing Finance, Reliance Commercial Finance, and RCom. Reports suggest that the ED has asked nearly a dozen banks for details on loans worth around ₹17,000 crore.
Bank of Baroda has confirmed it will notify regulatory authorities, including the Reserve Bank of India (RBI), about the fraud classification in line with RBI’s rules on fraud risk management.
RCom: From Telecom Giant to Insolvency
Reliance Communications was once one of India’s fastest-growing telecom companies, launched under the Reliance Anil Dhirubhai Ambani Group. It made rapid strides in the early 2000s with affordable mobile services, but the
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