Bank of Baroda Classifies Reliance Communications and Anil Ambani Loan Accounts as Fraud

REEDLAW Legal News Network | 5 September 2025 | 🔗 Find Shareable Link at the End

REEDLAW Legal News Network reports: In a major banking development, Bank of Baroda has classified the loan accounts of Reliance Communications and its former non-executive director, Anil Ambani, as fraudulent, intensifying the financial scrutiny surrounding the debt-laden telecom company and its promoters. This classification marks a crucial step in ongoing investigations and follows similar actions taken by other leading lenders.

The classification stems from findings of forensic audits and investigative reports revealing financial irregularities and suspected diversion of funds. Reliance Communications, already undergoing insolvency proceedings under the Insolvency and Bankruptcy Code (IBC), has faced repeated regulatory and enforcement actions for alleged breaches of banking norms and large-scale financial mismanagement.

Following the announcement, shares of Reliance Communications witnessed a steep decline, signalling growing investor anxiety. Other group companies also came under market pressure, though Reliance Power issued a clarification affirming that its operations and governance remain unaffected by this development.

Anil Ambani, in response, asserted that he had no operational or managerial involvement with Reliance Communications during the period under scrutiny, describing the move as an attempt to selectively target matters dating back over a decade. The resolution of the company’s outstanding debts remains under judicial consideration through insolvency proceedings, and this latest development is expected to have wide-reaching implications for recovery strategies and compliance measures.

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