Anil Ambani Questioned in Connection with Rs 2,929 Crore Bank Fraud Investigation

Industrialist Anil Ambani appeared for a second consecutive day of questioning at the Central Bureau of Investigation (CBI) headquarters in Delhi, as investigators probe an alleged bank fraud totaling Rs 2,929.05 crore ($350 million). The case centres on accusations that Reliance Communications Ltd (RCOM) diverted loan funds through a complex web of inter-company transactions, causing significant losses to a consortium of public sector banks led by the State Bank of India.

Background and Context

The investigation was triggered by a formal complaint filed by the State Bank of India (SBI) on August 18, 2025. This complaint relied heavily on a forensic audit report alleging that funds were misappropriated between 2013 and 2017. According to the audit, the diversion of loan money resulted in a wrongful loss of Rs 2,929.05 crore to SBI, part of a much larger total exposure of Rs 19,694.33 crore involving 17 public sector banks. The forensic findings suggest that the funds were moved out of the company’s books rather than being used for the stated operational purposes.

Key Figures and Entities

The criminal case names RCOM, Anil Ambani, and other unidentified individuals, including public servants. The banking consortium involved is extensive, with SBI serving as the lead bank. Other major lenders include the Bank of India, Central Bank of India, UCO Bank, Union Bank of India, Canara Bank, Indian Overseas Bank, IDBI Bank, and Oriental Bank of Commerce. Following the initial complaint, the probe widened to include additional grievances from lenders such as Punjab National Bank and Bank of Maharashtra. Further cases were registered in early 2026 based on complaints from Bank of Baroda and Punjab National Bank, citing exposures from merged entities like Dena Bank, Vijaya Bank, and United Bank of India.

Legal and Financial Mechanisms

Investigators allege that the fraud was executed through intricate inter-company transactions designed to obscure the flow of money. The CBI has stated that these mechanisms allowed for the large-scale diversion of funds away from the scrutiny of the lending banks. To gather evidence, the CBI secured search warrants from the Special Judge for CBI in Mumbai. On August 23, 2025, raids were conducted at two official premises of RCOM and the residential premises of Anil Ambani. Authorities seized several incriminating documents during these operations, which are now being analysed to trace the movement of funds and establish the liability of the directors.

Systemic Implications and Oversight

The expanding probe highlights ongoing vulnerabilities in the banking sector regarding the monitoring of consortium lending and the end-use of funds. The involvement of nearly two dozen public sector banks underscores the systemic risk posed by large corporate defaults. Regulatory bodies are likely to face pressure to tighten the oversight mechanisms for forensic audits and to enforce stricter compliance with lending covenants to prevent similar diversions in the future. The outcome of this investigation could set a significant precedent for how inter-company loans and related-party transactions are scrutinized under Indian banking law.

Sources

This report draws on CBI press releases, the State Bank of India complaint dated August 18, 2025, and legal filings regarding the Rs 2,929 crore fraud case involving Reliance Communications Ltd.