Reliance Communications (RCom) and its former non-executive director Anil Ambani have been classified as “fraud” accounts by Bank of Baroda, following a series of forensic reviews and hearings. The decision is based on a forensic audit by BDO India LLP, which found that RCom had misused borrowed funds, diverted loan proceeds, and engaged in unauthorized transactions. The audit revealed that the company had used loan funds for unauthorized purposes, including related-party transactions and layered transactions to conceal fund flows.
The process began in January 2024, when Bank of Baroda issued a show-cause notice to RCom’s directors. Ambani’s representatives requested a copy of the forensic report, which was provided in June 2024. Despite multiple extensions and a detailed response from Ambani, the bank found his arguments unsustainable. A writ petition filed in the Bombay High Court temporarily stalled the case, but was later withdrawn, allowing the bank to resume proceedings.
In July 2025, Ambani appeared before the bank’s zonal committee and made oral and written submissions, but the bank concluded that the explanations lacked merit. On August 29, the bank issued a fresh show-cause notice to RCom, followed by a reasoned order on September 2 that formally tagged the accounts as fraudulent. The classification relates to a loan exposure of Rs 1,656.07 crore, out of a sanctioned limit of Rs 2,462.50 crore.
A spokesperson for Ambani stated that the classification relates to matters over a decade old and emphasized that he was never involved in RCom’s day-to-day operations. The statement also accused some lenders of acting in a selective and delayed manner. The fraud tag bars RCom and Ambani from raising fresh credit and paves the way for further regulatory and investigative action. This decision makes Bank of Baroda the third major public sector bank to brand RCom’s loan accounts as fraudulent, following similar actions by State Bank of India and Bank of India. The classification has significant implications for RCom and Ambani, and may lead to further action by regulatory authorities.