SBI to classify Reliance Communication loan account as fraud, report Anil Ambani's name to RBI

The State Bank of India (SBI), India's largest lender, has decided to classify the loan account of the bankrupt telecom firm Reliance Communications as "fraudulent" and report the name of Anil Ambani, former Director of the company, to the Reserve Bank of India, citing suspected irregularities in the account, the company revealed on Tuesday.In a regulatory filing to the exchanges, the company said "the loan account of the company (is) to be classified as fraud" by SBI. The disclosure included a letter dated June 23 from SBI outlining the rationale behind its decision.

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"We have taken cognisance of the responses (wherever received) to our SCN (show-cause notice) and after due examination of the same it is concluded that sufficient reasons have not been provided by the respondent, to explain the non-adherence to the agreed terms and conditions of the loan documents or the irregularities observed in the conduct of the account of Reliance Communications to the satisfaction of the bank," the bank said in a letter to the company on June 23. "Accordingly, Fraud Identification Committee of the bank has decided to classify the loan account of Reliance Communication as fraud for the reasons mentioned in the enclosed order," the bank said. "The bank shall be taking further course of action to report the account of Reliance Communication and names of Anil Ambani, direc