The State Bank of India (SBI) has taken a major step in the case related to Reliance Communications (RCOM), a company once run by businessman Anil Ambani. SBI has officially marked the company’s loan as fraud and has sent a report to the Reserve Bank of India (RBI) including Anil Ambani’s name.
According to SBI, this action is being done as per RBI’s Master Directions and related circulars. The bank is following proper guidelines while reporting the loan account and individual responsible to RBI.
Loans Taken Before Insolvency
The loans in question were taken before Reliance Communications entered the Corporate Insolvency Resolution Process (CIRP) in June 2019. Since then, the company has been under the supervision of a Resolution Professional named Aneesh Niranjan Nanavati.
The matter is currently being heard at the National Company Law Tribunal (NCLT), Mumbai. A resolution plan for the company is also under review by the court.
What RCOM Says About the Matter
Reliance Communications has responded to SBI’s action. The company says it has been going through the insolvency process since 2019, and the lenders have already approved a resolution plan. Now, the plan is waiting for final approval from NCLT.
The loans that SBI referred to in its letter dated 23 June 2025 were all taken before the CIRP began. According to RCOM, these loans can only be resolved through the approved resolution plan or through liquidation under the Insolvency and Bankruptcy Code (IBC).
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RCOM has also pointed out that as per the law, no new legal cases or proceedings can be started or continued against a company that is already under CIRP.
Protection Under IBC Section 32A
The company has referred to Section 32A of the IBC, which provides legal protection in such cases. If the resolution plan is approved by NCLT, then the company cannot be held responsible for any alleged crimes committed before the insolvency process started.
Reliance Communications said it is currently taking legal advice to understand the situation better and decide the next steps.
What Happens Next?
This development is important because it shows how banks are taking strict action against loan defaulters, even if the companies are already under insolvency. At the same time, it also highlights how companies under CIRP have legal protections under Indian law.
For now, the focus will be on the final approval of the resolution plan by NCLT. If the plan is approved, RCOM may get relief from past loan-related issues. Until then, the legal process will continue between the bank, the regulators, and the company.
This case is one of the biggest examples of how corporate loans and financial misconduct are being handled under India’s new bankruptcy rules.
Disclaimer: This article is for informational purposes only. It does not contain any legal or financial advice. All details are based on available government and company reports.
