Anil Ambani has rejected Bank of India’s decision to classify Reliance Communications’ loan account and his name as fraudulent, said the company in a statement.

Bank of India (BoI)‘s move follows the State Bank of India’s similar action against the company in June.

“The action by Bank of India to classify the loan account of Reliance Communications Limited (RCom) along with Mr. Anil D. Ambani pertains to matters dating back more than 10 years, as per disclosures and records available in the public domain,” said the company.

“It is pertinent to note that Mr. Anil D. Ambani served only as a Non-Executive Director on the Board of RCom and resigned in 2019, over six years ago. He had no role whatsoever in the day-to-day operations or decision-making of the company. However, Ambani is being selectively singled out,” it added.

The company further alleged that the BoI acted without following principles of natural justice.

“While a show cause notice was issued to Ambani, the requisite documents were not furnished to him. Bank of India further deprived him of the opportunity of a personal hearing in the matter. These actions are contrary to the RBI regulations issued in July 2024, as well as to well-established law and judgments of the Supreme Court and the Bombay High Court,” it added.

The statement also highlighted that the bank had issued notices to 13 directors and key managerial personnel of RCom, but later withdrew them against all others, continuing only against Ambani.

“After an inordinate lapse of more than 10 years, select lenders have now chosen to initiate proceedings in a staggered and selective manner,” the spokesperson said.

BoI had granted a Rs 700 crore loan to RCom in August 2016 for capital and operational expenditure as well as repayment of existing liabilities.

The bank has classified the loan account of insolvent Reliance Communications as fraudulent and named its former director Anil Ambani, citing alleged fund diversion in 2016, according to a regulatory filing.

Half of the disbursed amount was invested in a fixed deposit, which the lender said violated the sanction terms.

In a letter dated August 8, it conveyed its decision to classify the accounts of RCom, Ambani and other former directors as fraud.

Earlier in June, State Bank of India (SBI) had alleged misappropriation of funds.

Following SBI’s complaint, the Central Bureau of Investigation filed a case and searched premises linked to RCom and Ambani.

Reliance Communications is undergoing insolvency proceedings under the supervision of a committee of creditors led by SBI and overseen by a resolution professional.

The matter has remained sub judice before the NCLT and the Supreme Court for the past six years.

Ambani has denied all allegations and charges and said he will pursue remedies available to him in accordance with legal advice.