Amid insolvency proceedings, Reliance Communications’s loan account to be flagged as ‘fraud’ by SBI

SBI says it found Anil Ambani & company's replies on allegations of fraud in loans taken out in 2016 from Indian banks, subsequently classified as bad or non-performing, 'insufficient'.

File photo of Anil Ambani | ANI

New Delhi: India’s Reliance Communications said late on Tuesday that State Bank of India has decided to report its loan account as “fraud” in a case dating back to August 2016.

The state-run lender would also report the name of Reliance Communications’ former director Anil Dhirajlal Ambani to the Reserve Bank of India, the company said, under rules that require key management personnel of fraud accounts to be reported to the regulator.

The firm, which is undergoing insolvency proceedings, is a group firm of the Anil Ambani-led Reliance Group.

Anil is the brother of Indian billionaire Mukesh Ambani, who chairs the oil-to-telecom conglomerate Reliance Industries.

State Bank of India and Anil Ambani did not immediately respond to Reuters’ requests for comment.

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