State-owned Bank of India has classified the loan account of insolvent Reliance Communications (RCom) as fraudulent, explicitly naming its former director, Anil Ambani, for alleged fund diversion in 2016. This follows a similar classification by the State Bank of India (SBI) in June, highlighting a pattern of concerns over the company's financial practices. Bank of India had extended a ₹700 crore loan to RCom in August 2016 for capital and operational expenditure and existing liability repayment. A significant anomaly noted was that half of the disbursed amount in October 2016 was invested in a fixed deposit, a use not permitted by the sanction letter, according to the bank's communication disclosed by RCom.

RCom confirmed on August 22 that it received a letter from Bank of India, dated August 8, detailing the decision to classify the loan accounts of the company, Anil Dhirajlal Ambani, and Manjari Ashok Kacker (erstwhile director) as 'Fraud'. Furthermore, RCom's subsidiary, Reliance Telecom Ltd, also received a similar classification letter from Bank of India, affecting its loan accounts and naming Grace Thomas (erstwhile director of RTL and present director of RCom) and certain other individuals.

The State Bank of India's earlier action, alleging misappropriation of bank funds through transactions violating loan terms, led to a complaint that triggered a Central Bureau of Investigation (CBI) probe. On Saturday, the CBI conducted searches at premises linked to Reliance Communications and Anil Ambani's residence. The CBI registered a complaint after SBI claimed a substantial loss of ₹2,929.05 crore due to alleged misappropriation by RCom and Ambani. The investigation involves alleged offenses under Sections 120B, 406, and 420 of the IPC, and Section 13(2) read with Section 13(1)(d) of the Prevention of Corruption Act, 1988. As part of these operations, various financial documents pertaining to the company and its subsidiaries were seized from RCom's Navi Mumbai office on August 23, 2025.

In response, Anil Ambani's spokesperson issued a strong denial of all allegations and charges, stating that he would defend himself. The spokesperson highlighted that the SBI complaint dates back over 10 years, and at the time, Ambani served as a non-executive director with no involvement in day-to-day management. It was also noted that SBI had previously withdrawn proceedings against five other non-executive directors, leading to the assertion that Ambani had been