Lok Sabha Question No. 113 (UNSTARRED), answered on 2025-07-21
Subject: Steps taken by SBI to Safeguard Public Savings
Ministry: FINANCE
Asked by: Shri S Venkatesan

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO- 113

ANSWERED ON MONDAY, JULY 21, 2025/ASHADHA 30, 1947 (SAKA)

## STEPS TAKEN BY SBI TO SAFEGUARD PUBLIC SAVINGS

## 113. SHRI S VENKATESAN

Will the Minister of FINANCE be pleased to state:-

(a) whether the Government has taken cognizance of the new item "State Bank of India (SBI)  classified  Anil  Ambani-led  Reliance  Communications'  loan  account  as  fraud" appeared in "The Hindu" dated 2 July, 2025;

- (b) if so, the details thereof and the action taken thereon;
- (c) the total amount of credit involved in the case; and
- (d) the remedial steps taken by the SBI to safeguard public savings lost due to this along with the present status thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF FINANCE

(SHRI PANKAJ CHAUDHARY)

(a) to (d): Yes sir. SBI has classified Reliance Communications' Limited (RCOM) along with  Promoter  Director  Mr.  Anil  D  Ambani  as  'Fraud'  on  13.06.2025  in  accordance with  the  Reserve  B ank  of  India's  Master  Directions  on  Fraud  Risk  Management  and Bank's  Board -approved  Policy  on  Classification,  Reporting  &  Management  of  Frauds. Further,  on  01.07.2025,  as  part  of  disclosure  compliance,  Resolution  Professional  of RCOM has informed the Bombay Stock Exchange regarding fraud classification by the bank.

The  credit  exposure  by  SBI  in  the  aforesaid  account  includes,  fund  based -principal outstanding amount of Rs. 2,227.64 crore along with the accrued interest and expenses w.e.f. 26.08.2016 and non-fund based Bank Guarantee of Rs. 786.52 crore.

RCOM is  undergoing  Corporate  Insolvency  Resolution  Process  under  the  Insolvency and Bankruptcy Code, 2016 (IBC). Resolution Plan was approved by the Committee of Creditors  and  filed  with  the  National  Company  Law  Tribunal  (NCLT),  Mumbai  on 06.03.2020, and NCLT approval is awaited.

The bank has also initiated Personal Insolvency Resolution Process  under IBC against Mr. Anil D Ambani and the same is being heard by NCLT, Mumbai.

The  Bank  had  earlier  classified  the  account  and  promoters  Mr.  Anil  D  Ambani  as 'Fraud' on 10.11.2020 and filed a complaint  with  the Central Bureau of Investigation (CBI) on 05.01.2021. However, the complaint was returned in view of the "status quo" order dated 06.01.2021 by the Hon'ble High Court, Delhi.

Meanwhile, the Hon'ble Supreme Court Judgement dated 27.03.2023 in Civil Appeal No. 7300-7307  of  2022  (State  Bank  of  India  &  Others  Vs  Rajesh  Agarwal  &  Others) mandated  that  lenders  provide  borrowers  with  an  opportunity  to  represent  before classifying their accounts as fraud. Accordingly, the fraud classification in the account was reversed by the bank on 02.09.2023.

The  fraud  classification  process  was  re-run,  and  the  account  was  again  classified  as 'Fraud' after following the due process a s per RBI circular dated 15.07.2024.

On 24.06.2025, the bank has reported classification of fraud to RBI, and is also in the process of lodging complaint with CBI.

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