Anil Ambani’s counsel is learnt to have urged the State Bank of India (SBI) to withdraw its decision classifying the debt-laden telecom operator and its promoter-director Anil Ambani as “fraud.” The counsel claimed the move was made “without giving Anil D. Ambani a chance to present his case.”
Once among India’s largest mobile service providers, RCom is currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The resolution plan was approved by the Committee of Creditors and filed with the National Company Law Tribunal (NCLT), Mumbai, on March 6, 2020. The tribunal’s approval is still awaited.
In July, the government informed Parliament that SBI had declared both RCom and Ambani as fraud entities on June 13, 2025, under the RBI’s Master Directions on Fraud Risk Management and the bank’s board-approved policy. Minister of State for Finance Pankaj Chaudhary said in a written reply to the Lok Sabha that SBI was also in the process of filing a complaint with the Central Bureau of Investigation (CBI). He added that the bank had initiated personal insolvency proceedings against Ambani, which are pending before the NCLT, Mumbai.
“SBI’s order was passed without granting Anil D. Ambani a personal hearing. This denial is a direct violation of fundamental principles,” Anil Ambani counsel said, arguing that the move undermines the bank’s impartiality and credibility. Sources claimed the bank has not shared all documentation with regard to the show cause notice with the erstwhile promoter of the company.
Ambani’s counsel added that Canara Bank, part of the consortium of RCom’s lenders alongside SBI, withdrew its own fraud classification of the company and Ambani before the Bombay High Court on July 10. According to the counsel, the bank has acknowledged that its earlier classification “could not be sustained in law” and chose not to pursue the matter further.
SBI’s total exposure to RCom includes a fund-based principal outstanding of nearly Rs 2,228 crore as of August 26, 2016, along with accrued interest and expenses, in addition to non-fund-based guarantees worth around Rs 787 crore. Referring to Canara Bank’s withdrawal, Ambani’s counsel questioned the consistency of lenders’ actions within the same consortium, asking why SBI continued to hold its position.
