Bank of Baroda Declares Anil Ambani's and Reliance Communications’ Loan Accounts as Fraud

Bank of Baroda has officially labelled the loan accounts of Anil Ambani and Reliance Communications Ltd as 'fraud' in a communication dated September 2, 2025. The declaration comes amidst ongoing insolvency proceedings and growing scrutiny of the group's financial dealings.

Bank of Baroda Declares Loan Accounts as 'Fraud'

In its letter dated September 2, 2025, Bank of Baroda informed Reliance Communications Ltd that loan accounts related to the company and its former director, Anil Ambani, have been classified as 'fraud'. These accounts refer to credit facilities extended before the initiation of the Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016.

The company has communicated its intention to seek legal advice to decide on its next steps following this classification.

Insolvency Proceedings and NCLT’s Role

Reliance Communications Ltd has been undergoing CIRP since 2020. A resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT), Mumbai, on March 6, 2020. Approval from the tribunal is still awaited. According to the company, the loans in question must be resolved either through a court-approved resolution plan or via liquidation under the Code.

Prior Allegations and Similar Moves by Other Banks

The declaration by Bank of Baroda follows earlier fraud classifications by State Bank of India in June 2025 and Bank of India on August 24, 2025. These banks had cited alleged fund diversion and breaches of loan covenants, naming Anil Ambani alongside the company.

Read More: Mukesh Ambani's Reliance Industries Plans to Raise $2 Billion via Asset-Backed Securities!

Enforcement Directorate Involvement

Adding to the complications, the Enforcement Directorate had previously conducted extensive searches covering 50 companies and 25 individuals connected to Reliance Group under the Prevention of Money Laundering Act. These coordinated raids highlight increasing governmental scrutiny over corporate financial irregularities at the Ambani-led entity.

Conclusion

The declaration of loan accounts as 'fraud' by Bank of Baroda marks yet another development in the complex insolvency and legal saga surrounding Anil Ambani and Reliance Communications Ltd. As proceedings continue under the IBC framework, further legal and regulatory actions are likely to follow depending on tribunal outcomes and investigative findings.

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