The Central Bureau of Investigation (CBI) has carried out searches at premises linked to Anil Ambani and his company Reliance Communications (RCOM) in Mumbai. The raids are connected to an alleged Rs 2,000 crore bank fraud that hit the State Bank of India (SBI).
SBI Declares RCom a Fraud Account
On June 13, SBI officially classified RCom and its Promoter Director Anil Ambani as “fraud.” The decision was made under the Reserve Bank of India’s rules on fraud risk management. SBI’s internal committee examined the matter and found major irregularities in the use of loans.
In its letter to RCom, the bank stated that funds were moved through a complex network of group companies.
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“We have taken cognizance of the responses to our Show Cause Notice and after due examination of the same, it is concluded that sufficient reasons have not been provided by the respondent, to explain the non-adherence to the agreed terms and conditions of the loan documents or the irregularities observed in the conduct of the account of RCL to the satisfaction of the bank,” SBI said.
Huge Exposure to RCom
Minister of State for Finance Pankaj Chaudhary told Parliament last month that SBI’s total exposure to RCom stood at Rs 2,227.64 crore in fund-based loans, along with accrued interest. The bank also extended a non-fund-based guarantee of Rs 786.52 crore.
As per RBI guidelines, once a loan account is declared as “fraud,” the bank must inform the RBI within 21 days and report the matter to the CBI or police.
CBI & ED Step In
The CBI raids came just weeks after the Enforcement Directorate (ED) questioned Anil Ambani in a separate money laundering case. That case involves multiple loan frauds linked to his group companies.
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Officials revealed that loans worth Rs 3,000 crore taken from Yes Bank between 2017 and 2019 were diverted for other purposes. Investigators also suspect that Reliance Communications may have committed a larger fraud exceeding Rs 14,000 crore.
Alleged Quid Pro Quo With Yes Bank
According to the agency, Yes Bank promoters allegedly approved loans to RCom in exchange for payments routed to their private companies. This quid pro quo arrangement came just before the loans were sanctioned, pointing to possible collusion.
What Comes Next?
The case adds another blow to Anil Ambani’s debt-hit businesses. The goal of the ED and CBI’s investigations would be to track down the money that was diverted and find the people who did it. The raids show how Indian authorities are becoming more vigilant in situations of corporate loan fraud, particularly where bank funds are involved.
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