Following the State Bank of India, Bank of India has also declared the loan account of bankrupt Reliance Communications as fraudulent and named the company’s former director Anil Ambani in the case. In the information provided to the stock market, Bank of India (BOI) has cited alleged fund manipulation in 2016.

The public sector bank BOI had provided a loan of ₹700 crore to Reliance Communications in August 2016 for its current capital expenditure, operational expenses, and payment of existing liabilities. Reliance Communications (RCom) informed the stock market about the bank’s letter. According to this, half of the sanctioned amount issued in October 2016 was invested in a fixed deposit, which was not permitted as per the sanction letter.

Bank of India declares RCom’s loan accounts as fraudulent

RCom stated that it received a letter dated August 8 from Bank of India on August 22, informing about the bank’s decision to “classify the loan accounts of the company, Anil Dhirubhai Ambani (the company’s promoter and former director), and Manjari Ashok Kakkar (the company’s former director) as fraudulent.”

Earlier, the State Bank of India (SBI) had also done the same in June this year, alleging misuse of bank funds by conducting transactions in violation of loan terms. Following SBI’s complaint, the Central Bureau of Investigation (CBI) searched premises linked to Reliance Communications and Ambani on Saturday.

The CBI stated that the State Bank of India has claimed a loss of ₹2,929.05 crore due to alleged manipulation by Reliance Communications and Ambani, who is the younger brother of Asia’s richest person Mukesh Ambani. Following this, the central investigation agency registered a complaint.

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Anil Ambani’s spokesperson “strongly denied all allegations and accusations” in a statement and said that he “will defend himself.” The spokesperson said, “The complaint filed by SBI relates to cases that are more than 10 years old. At that time, Ambani was a non-executive director of the company and had no role in the day-to-day management of the company.”

State Bank of India

The State Bank of India (SBI) is the largest and oldest commercial bank in India, tracing its origins to the Bank of Calcutta, which was established in 1806. It was nationalized in 1955 and now operates as a public sector banking and financial services statutory body, playing a pivotal role in the country’s economic development.

Bank of India

The Bank of India is one of the oldest and largest public sector banks in India, founded in 1906 during the British colonial era. It was nationalized in 1969 and has since played a pivotal role in the country’s economic development, with a vast network of branches across India and internationally.

Reliance Communications

Reliance Communications was an Indian telecommunications company, founded by Anil Ambani in 2004. It grew to become one of the country’s major mobile network operators before facing significant financial challenges. The company filed for insolvency in 2019, marking the end of its operations.

Central Bureau of Investigation

The Central Bureau of Investigation (CBI) is India’s premier federal investigative agency, established in 1941 as the Special Police Establishment to investigate cases of bribery and corruption in the War & Supply Department during World War II. It was later renamed the CBI in 1963 and its mandate was expanded to investigate serious crimes, economic offenses, and special crimes. Today, it operates under the jurisdiction of the Government of India and is often called upon for complex, multi-state, and high-profile cases.