Daijiworld Media Network- New Delhi
New Delhi, Jul 22: In a major development, the State Bank of India (SBI) has officially classified Reliance Communications (RCom) and its promoter-director Anil D Ambani as 'fraud' entities, Parliament was informed on Monday. The classification was made on June 13, in line with RBI’s Master Directions on Fraud Risk Management and the bank’s board-approved policy.
Minister of State for Finance, Pankaj Chaudhary, stated in a written reply in the Lok Sabha that the bank reported the fraud classification to the Reserve Bank of India on June 24, and is now in the process of lodging a formal complaint with the Central Bureau of Investigation (CBI).
Following regulatory requirements, the resolution professional of RCom disclosed the fraud tag to the Bombay Stock Exchange on July 1.
SBI’s total credit exposure to the financially beleaguered telecom firm includes a fund-based principal of Rs 2,227.64 crore along with accrued interest and a non-fund-based bank guarantee of Rs 786.52 crore.
Currently, Reliance Communications is undergoing Corporate Insolvency Resolution under the Insolvency and Bankruptcy Code (IBC), with a resolution plan already submitted to the National Company Law Tribunal (NCLT), Mumbai.
Additionally, SBI has also initiated a Personal Insolvency Resolution Process against Anil Ambani, which is being heard by the NCLT, Mumbai.
It may be recalled that in a similar move earlier, the bank had classified the same account as fraud on November 10, 2020, and filed a complaint with the CBI on January 5, 2021. However, the complaint was returned following a status quo order from the Delhi High Court the next day.
Following a Supreme Court directive dated March 27, 2023, mandating that borrowers be given a chance to present their case before any fraud classification, SBI had reversed its earlier declaration on September 2, 2023. The bank, after re-evaluating the process in accordance with RBI’s July 15, 2024 circular, again labelled the account and Anil Ambani as ‘fraud’ this year.
Meanwhile, in response to another question, Chaudhary clarified that there is no proposal before the Union Government to waive outstanding agricultural loans. However, several support measures, including Kisan Credit Cards (KCC), interest subvention schemes, and increased credit targets, are in place to support farmers.
On the insurance front, Chaudhary shared updates on the Bima Sakhi-Mahila Career Agent (MCA) scheme launched by LIC in December 2024. LIC paid Rs 62.36 crore in stipends during FY2024-25, and a Rs 520 crore budget has been allocated for FY2025-26. As of now, 2.05 lac Bima Sakhis are active across the country, benefiting from stipend support and career advancement opportunities.