After SBI, Bank of India labels Anil Ambani, RCom accounts ‘fraud’
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Mumbai: Following the State Bank of India’s (SBI) recent declaration of Reliance Communications’ (RCom) accounts as ‘fraud,’ the Bank of India (BOI) has also classified the loan accounts of the company, its promoter Anil Ambani, and Reliance Telecom as fraudulent, the company informed stock exchanges on Sunday.
BOI has cited diversion of funds and violation of loan terms as reasons for the classification. According to a filing with the stock exchange, RCom received a letter from BOI dated August 8, which was delivered on August 22.
The notice from BOI stated that the loan accounts of RCom, Anil Dhirajlal Ambani, and Manjari Ashik Kacker were tagged as ‘fraud’ for an outstanding loan of Rs 724.78 crore. The bank highlighted that the account had become a non-performing asset (NPA) in June 2017 and, despite repeated follow-ups, the borrowers and guarantors failed to repay the dues.
"The account of the borrower turned NPA on 30.06.2017 with an outstanding of Rs 724.78 crore. The bank has been following up with the borrowers and guarantors for repayment, however, they have failed and neglected to clear the dues," BOI noted in its letter, as shared by the company in the filing.
BOI also issued a similar notice to Reliance Telecom Limited, declaring its account as ‘fraud’ along with those of its directors Grace Thomas and Satheesh Seth, related to a default of Rs 51.77 crore. Other individuals named in connection with the case include Gautam Bhailal Doshi, Dagdulal Kastruchand Jain, and Prakash Shenoy. RCom and its subsidiaries had borrowed a total of Rs 31,580 crore from various banks.
Meanwhile, the Central Bureau of Investigation (CBI) has intensified its probe. On Saturday, officials carried out searches at two locations in Mumbai, including Anil Ambani’s residence and the office premises of RCom. This action is linked to a fresh case of alleged bank fraud worth Rs 2,929.05 crore, registered on August 21 following a complaint by SBI.
The complaint accused RCom, Anil Ambani, unidentified public servants, and others of cheating the bank by misrepresenting facts to secure loans. Investigators allege that the borrowed funds were diverted through multiple channels, including inter-company loan transactions and inter-corporate deposits. The CBI has also pointed to irregular practices such as misuse of sales invoice financing, discounting of RCom bills by Reliance Infratel, routing of funds through group entities, and writing off of capital advances given to Netizen Engineering Pvt. Ltd., another company under the Reliance ADA Group.
A spokesperson for Ambani, however, stated that the allegations are baseless and that he will duly defend himself.
With IANS inputs