Anil Ambani Refutes Bank of India’s ‘Fraud’ Loan Account Allegations; Here’s What He Said

Anil Ambani refuted all allegations made by the Bank of India to classify his loan accounts, Reliance Communication (RComm), and Reliance Telecom’s account as ‘fraud’. Ambani, via his spokesperson, on Sunday, said that the matter dates back more than 10 years. He had stepped down as the non-executive director on the board of RComm in 2019, and since then had played no role in the daily operations or decision-making of the company, the spokesperson added. The development comes just weeks after the State Bank of India had made similar allegations. 

“He [Anil Ambani] has no role whatsoever in the day-to-day operations or decision-making of the company. However, Ambani is being selectively singled out,” said Anil Ambani’s spokesperson in a statement on August 24. 

He also argued that while the Bank of India had issued a show cause notice to 13 directors and key managerial personnel of the company, the bank unilaterally withdrew allegations against others and continued proceedings against Ambani.

“Notably, Bank of India, after issuing a Show Cause Notice to 13 Directors and Key Managerial Personnel (KMPs) of RCom, unilaterally withdrew the same against all others. However, it selectively continued the proceedings against Anil D. Ambani without following the principles of natural justice,” the spokesperson added. 

Presently, RComm is managed by a Committee of Creditors headed by SBI and overseen by a resolution professional. The matter is still pending before judicial forums, including the National Company Law Tribunal and the Supreme Court of India. 

Bank of India’s Allegations 

According to a company statement on exchanges, Bank of India classified the loan accounts of promoter Anil Ambani, RComm, and Reliance Telecom as ‘fraud’. The bank accused Ambani and his entities of loan diversion and non-compliance with sanction terms. 

“The account of the borrower turned NPA on 30.06.2027 with an outstanding of ₹724.78 Crores. The bank has been following up with the borrowers and guarantors for repayment of dues, however, they have failed and neglected to make repayment of the dues,” the bank said in its letter. 

Apart from Ambani’s loan account, the bank has also flagged accounts of directors Grace Thomas and Satheesh Seth for a loan default of ₹51.77 crore. Besides this, others named in the case include Gautam Bhailal Doshi, Dagdulal Kasturchand Jain, and Prakash Shenoy.