New Delhi: The State Bank of India (SBI) has officially categorized the loan account of the troubled telecom company Reliance Communications as 'fraud' and intends to notify the Reserve Bank of India (RBI) regarding Anil Ambani, the company's former director, as per a recent regulatory disclosure.

Reliance Communications acknowledged receiving a letter from SBI dated June 23, 2025, confirming this decision.

The filing indicates that Reliance Communications and its subsidiaries collectively borrowed Rs 31,580 crore from various banks.

The bank's Fraud Identification Committee identified irregularities in how the loans were utilized, revealing a complicated network of fund transfers among multiple affiliated entities.

The correspondence sent to Reliance Communications and Anil Ambani stated that SBI would report the loan account as fraudulent and inform the RBI, in accordance with existing RBI regulations.

Currently, Reliance Communications is undergoing a liquidation process.

The committee's findings revealed that approximately 44% of the total loan, amounting to Rs 13,667.73 crore, was allocated for repaying other loans and obligations.

Additionally, Rs 12,692.31 crore, or 41% of the total loan, was directed towards payments to related parties.

The report detailed that Rs 6,265.85 crore was used to settle other bank loans, while Rs 5,501.56 crore was paid to connected parties for purposes not aligned with the original loan agreements.

Moreover, a Rs 250-crore loan from Dena Bank, intended for statutory dues, was misappropriated and redirected to Reliance Communications Infrastructure Ltd (RCIL) as an Inter-Corporate Deposit (ICD), later claimed to repay an External Commercial Borrowing (ECB) loan.

The committee also noted that a Rs 248 crore loan sanctioned by IIFCL for capital expenditures was misused, with Rs 63 crore paid to Reliance Infratel Ltd (RITL) and Rs 77 crore to RIEL for loan repayments.

Instead of direct transfers to these companies, funds were routed through RCIL, with no explanation provided by management or Anil Ambani. This raises concerns of fund misappropriation and breach of trust.

The committee highlighted potential routing of bank loans by the RCom Group, which includes mobile tower operator Reliance Infratel Ltd (RITL), telecom service provider Reliance Telecom Ltd (RTL), and others.

The report indicated that RCom, RITL, and RTL engaged in ICD transactions totaling Rs 41,863.32 crore, of which only Rs 28,421.61 crore could be traced.

RCom reportedly utilized a Rs 100-crore intraday limit to cycle funds through various group entities, including RWSL, RTL, and RCIL multiple times within a single day.

These transactions appear to lack authenticity and do not seem to follow standard business practices. It seems RCom used intraday limits to finance RWSL, resulting in a reduction of RTL's debtors by Rs 1,110 crore, suggesting manipulation of financial records through fictitious accounts.

The committee raised concerns regarding transactions involving Netizens, indicating possible attempts to divert funds through manipulated financial records.