Bank of Baroda Classifies Loan Accounts of Reliance Communications and Anil Ambani as 'Fraud'
The Wire Staff
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New Delhi: Loan accounts of Reliance Communications Ltd (RCom) and its former promoter Anil Ambani have been classified as “fraud” by the Bank of Baroda, adding to the troubles of the debt-laden telecom operator that has been under insolvency proceedings since 2019.
Rcom said in an exchange filing on Thursday (September 4) that it had received a communication dated September 2 from the bank, reported Business Standard.
The notice cited the Reserve Bank of India’s Master Directions on Fraud Risk Management in Commercial Banks and Financial Institutions, 2024, as the basis for the classification.
Earlier, similar actions were taken by the State Bank of India (SBI) and Bank of India (BoI), which last month flagged RCom’s loan account and Ambani’s name, alleging diversion of funds in 2016.
A spokesperson on behalf of Ambani said that Ambani is “being targeted in a selective manner.”
“It is pertinent to note that Mr. Anil D. Ambani served only as a Non-Executive Director on the Board of RCom from inception in 2006 until his resignation from the Board in 2019, over six years ago (for almost 14 years). He was never an Executive Director or a KMP of the company, and had no role whatsoever in the day-to-day operations or decision-making of the company,” said the spokesperson.
“It is a matter of record that RCom had a lender consortium comprising 14 banks. After an inordinate lapse of more than 10 years, select lenders have now chosen to initiate proceedings in a staggered and selective manner targeting Mr. Ambani,” the statement added.
The statement said that Ambani categorically denies all allegations and charges and shall pursue remedies available to him in accordance with legal advice.
In its order, the Bank of Baroda rejected representations from Ambani’s legal team that the show-cause notices were procedurally flawed or based on outdated directions.
“Submissions by Ambani were found repetitive, unsubstantiated, and without merit. Forensic Audit Report (FAR) showed financial irregularities not rebutted with evidence,” the bank’s fraud identification committee concluded, reported Business Standard.
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