In a significant development for Reliance Communications (RCom), Bank of India has classified the loan accounts of the insolvent company, its former director Anil Ambani, and other erstwhile directors as fraudulent. This action by the state-owned lender follows a similar move by the State Bank of India (SBI) in June, escalating the scrutiny on RCom's financial dealings.

Bank of India extended a ₹700 crore loan to Reliance Communications in August 2016 to support its capital and operational expenditures and to facilitate the repayment of existing liabilities. A crucial detail revealed in a regulatory filing is that half of the sanctioned amount, disbursed in October 2016, was invested in a fixed deposit, a move reportedly not permitted under the terms of the sanction letter. RCom officially disclosed on August 22 that it had received a letter from Bank of India, dated August 8, confirming the decision to classify these accounts as 'Fraud'.

Previously, SBI had initiated similar proceedings, alleging misappropriation of bank funds through transactions that violated loan terms. This led the Central Bureau of Investigation (CBI) to register a complaint against RCom and Anil Ambani, conducting searches at premises linked to the company and Ambani's residence. SBI claimed a substantial loss of ₹2,929.05 crore due to the alleged misappropriation. The CBI's search operation at RCom's Navi Mumbai office on August 23, 2025, involved the seizure of various financial documents, with the investigation focusing on alleged offences under multiple sections of the IPC and the Prevention of Corruption Act.

Anil Ambani, through a spokesperson, has vehemently denied all allegations and charges, stating his intention to defend himself. His defense highlights that the SBI complaint pertains to matters dating back over 10 years and that, at the relevant time, he served as a non-executive director with no involvement in the day-to-day management of RCom. The spokesperson also pointed out that SBI had withdrawn proceedings against five other non-executive directors, suggesting Ambani has been