Anil Ambani, the Chairman of Reliance Communications (RCom), has faced a significant setback as the Bank of Baroda has declared his loan accounts as “fraud”. This decision comes after other major banks, such as the State Bank of India (SBI) and the Bank of India (BOI), had already taken similar actions. The declaration of fraud is related to a loan of ₹2,929 crore that RCom had taken from SBI.
The Central Bureau of Investigation (CBI) has also registered a First Information Report (FIR) against Anil Ambani and RCom in connection with the alleged loan fraud. The CBI’s investigation is focused on determining whether RCom had misled the bank into sanctioning the loan, and whether the company had diverted the funds for purposes other than those stated.
The Bank of Baroda’s decision to declare Anil Ambani’s loan accounts as fraud is a significant development, as it indicates that the bank believes that RCom had intentionally defaulted on the loan. This declaration can have serious consequences for Anil Ambani and RCom, including potential legal action and damage to their reputation.
The loan in question was taken by RCom from SBI in 2012, and the company was required to repay the amount with interest. However, RCom defaulted on the loan, and the bank was forced to classify the account as a non-performing asset (NPA). The CBI’s investigation is ongoing, and it is likely that more details will emerge in the coming days.
The declaration of Anil Ambani’s loan accounts as fraud is the latest in a series of setbacks for the businessman. RCom has been facing significant financial difficulties in recent years, and the company has been struggling to repay its debts. The company’s troubles began when the Indian telecom industry was disrupted by the entry of Reliance Jio, which is owned by Anil Ambani’s brother, Mukesh Ambani.
The consequences of the Bank of Baroda’s decision are likely to be severe for Anil Ambani and RCom. The company may face legal action, and its reputation may be damaged. The declaration of fraud can also make it difficult for RCom to raise funds from banks and other lenders in the future. Overall, the developments surrounding Anil Ambani and RCom’s loan accounts are a significant concern for the Indian banking sector and the telecom industry as a whole.