Anil Ambani's RCom Declared Fraud by SBI, Bank of India; CBI Probe Looms

Published 6 months ago• 1 minute read

David Isong

Anil Ambani's RCom Declared Fraud by SBI, Bank of India; CBI Probe Looms

Following in the footsteps of the State Bank of India, Bank of India has officially classified the loan account of the now-insolvent Reliance Communications (RCom) as fraudulent. This classification also extends to its former director, tycoon Anil Ambani, and other erstwhile directors, citing allegations of fund diversion dating back to 2016. This decision by Bank of India comes after an initial loan of ₹700 crore was granted to RCom in August 2016 for capital and operational expenditure, as well as repayment of existing liabilities. A significant portion of this sanctioned amount, specifically half, was reportedly invested in a fixed deposit in October 2016, a practice explicitly prohibited by the sanction letter, according to a letter from the bank disclosed by RCom.

RCom confirmed on August 22 that it received a letter dated August 8 from Bank of India, stating the bank's decision