Breaking News: ED Raids Anil Ambani’s Offices and Residences in Mumbai and Delhi; SBI Declares RCom and Ambani as ‘Fraud’
Mumbai/Delhi, July 24, 2025 – In a major development, the Enforcement Directorate (ED) conducted raids at multiple offices and residences of industrialist Anil Dhirubhai Ambani in Mumbai and Delhi on Thursday. The raids are part of an ongoing investigation into financial irregularities linked to Reliance Communications (RCom), a telecom company promoted by Ambani. Concurrently, the State Bank of India (SBI) has classified RCom and its promoter, Anil Ambani, as ‘fraud’ and is preparing to lodge a formal complaint with the Central Bureau of Investigation (CBI).
SBI’s Fraud Classification and Financial Exposure
According to a written reply by Minister of State for Finance Pankaj Chaudhary in the Lok Sabha, SBI classified RCom and Anil Ambani as ‘fraud’ on June 13, 2025, in line with the Reserve Bank of India’s (RBI) Master Directions on Fraud Risk Management and the bank’s board-approved policy. On June 24, 2025, SBI reported this classification to the RBI and is in the process of filing a complaint with the CBI to initiate further action.
SBI’s credit exposure to RCom includes a fund-based principal outstanding amount of ₹2,227.64 crore, along with accrued interest and expenses since August 26, 2016. Additionally, the bank has a non-fund-based exposure through a bank guarantee of ₹786.52 crore. The significant financial exposure underscores the severity of the case, which has now escalated to a fraud classification.
RCom’s Insolvency and Legal Proceedings
Reliance Communications, once a major player in India’s telecom sector, has been undergoing a Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), 2016. The Committee of Creditors approved a resolution plan for RCom on March 6, 2020, which is currently awaiting approval from the National Company Law Tribunal (NCLT) in Mumbai. The prolonged delay in the resolution process has added to the complexities surrounding the company’s financial distress.
In a related development, SBI has also initiated a Personal Insolvency Resolution Process against Anil Ambani under the IBC. The case is being heard by the NCLT, further intensifying scrutiny on the industrialist’s financial dealings.
ED Raids and Broader Investigation
The ED’s raids on Ambani’s properties in Mumbai and Delhi are believed to be part of a wider probe into allegations of money laundering and financial mismanagement linked to RCom and its associated entities. Sources indicate that the agency is investigating whether funds were siphoned off or diverted to other entities, contributing to RCom’s financial collapse. The raids targeted key locations, including Ambani’s residences and offices of companies linked to the Reliance ADA Group.
The ED’s actions come amid heightened regulatory and legal scrutiny of Ambani’s business empire, which has faced significant challenges in recent years due to mounting debts and operational setbacks. RCom, once a flagship company of the Reliance ADA Group, has been grappling with insolvency proceedings since 2019, following its inability to service massive debts accumulated during the telecom price wars and subsequent market disruptions.
Disclosure to Bombay Stock Exchange
On July 1, 2025, the Resolution Professional overseeing RCom’s insolvency process informed the Bombay Stock Exchange (BSE) about SBI’s fraud classification, complying with disclosure requirements. This public acknowledgment has further spotlighted the financial and legal troubles plaguing RCom and its promoter.
Background and Context
Anil Ambani, the younger brother of billionaire Mukesh Ambani, was once hailed as one of India’s most prominent industrialists, leading the Reliance ADA Group with interests in telecom, infrastructure, power, and entertainment. However, RCom’s aggressive expansion and subsequent failure to adapt to the competitive telecom landscape, particularly after the entry of Reliance Jio in 2016, led to its downfall. The company’s mounting debts, coupled with legal battles and regulatory challenges, have significantly eroded its market position.
The fraud classification by SBI and the ED raids mark a significant escalation in the ongoing saga of RCom’s financial troubles. Analysts suggest that these developments could have far-reaching implications for Ambani’s other business ventures and his personal financial standing.
Next Steps
As the CBI prepares to take up SBI’s complaint, the ED’s investigation is expected to intensify, potentially uncovering further details about the alleged financial irregularities. The outcome of the NCLT proceedings, both for RCom’s corporate insolvency and Ambani’s personal insolvency, will be closely watched by stakeholders, including creditors, investors, and regulators.
The case also highlights the broader challenges facing India’s corporate sector, particularly in the telecom industry, where financial mismanagement and aggressive borrowing have led to significant distress for several players.
Official Statements
As of now, neither Anil Ambani nor the Reliance ADA Group has issued an official statement regarding the ED raids or SBI’s fraud classification. The ED and SBI are also yet to provide additional details about the ongoing investigations.
This is a developing story, and further updates are expected as the investigations progress. For more information on related financial regulations or insolvency processes, visit the RBI’s official website (www.rbi.org.in) or the NCLT portal (www.nclt.gov.in).
