Anil Ambani Denies Fraud Loan Allegations, Blames Bank of India for Unfair Treatment

Anil Ambani has firmly denied allegations tied to the Bank of India’s labelling of Reliance Communications’ (RCom) loan account as fraudulent, stating that the move selectively targets him despite his lack of operational involvement since 2019, as per news reports. The disagreement has reignited scrutiny of corporate governance in long-standing financial cases.

Ambani Challenges BoI's Fraud Tag Over ₹724.78 Crore Loan

Bank of India issued a notice alleging that RCom’s ₹724.78 crore loan account, along with loans of Reliance Telecom and other related individuals, constitutes fraud. Ambani, who served only as a Non-Executive Director until 2019, refutes these charges, stressing he had no role in the company's operations or decision-making post-resignation.

Natural Justice and Procedural Concerns Raised

Ambani’s spokesperson claims BoI failed to follow RBI’s July 2024 guidelines, skipping due process by not providing essential documents and denying him a personal hearing. Although the bank had initially sent show cause notices to 13 individuals, proceedings continued solely against Ambani, raising questions of selective prosecution.

Background of the Loan Default and Timeline

RCom’s account became a non-performing asset on June 30, 2017, with an outstanding debt of ₹724.78 crore to BoI. Reliance Telecom also defaulted on ₹51.77 crore. Despite attempts to recover dues, BoI alleges persistent non-repayment. The total exposure of lenders stands near ₹31,580 crore, involving 14 banks.

Read More: ₹17,000-Crore Bank Fraud Probe: ED Questions Key Executives of Anil Ambani-Led Reliance Group!

Resolution Process Underway in Judicial Forums

Currently, RCom is managed by a Committee of Creditors led by SBI and overseen by a Resolution Professional under National Company Law Tribunal (NCLT) supervision. Ambani highlights that the matter remains under judicial consideration in multiple forums, including the Supreme Court, where related cases have been ongoing for over 6 years.

Conclusion

Anil Ambani has rejected allegations of loan fraud linked to RCom, accusing Bank of India of singling him out and bypassing fair legal procedures. As the case continues under judicial review, the development underscores complexities in resolving legacy corporate defaults and the critical role of due diligence in financial accountability.

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