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Economic Times

RPower, Reliance Infra shares tumble up to 5% after SBI flags RCom loan as fraud

Shares of Reliance Power and Reliance Infrastructure fell sharply after SBI classified Reliance Communications' loan as fraud, implicating Anil Ambani. The move, based on a 2020 forensic audit, alleged diversion of Rs 12,692 crore. Ambani's legal team called the action ex parte and unjust, claiming it violates RBI norms and court rulings while ignoring his objections for nearly a year. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Reliance Power and Reliance Infrastructure tumbled in Thursday's trade after the State Bank of India (SBI) classified the loan account of Reliance Communications (RCom) as fraud, implicating the company's former director, Anil Ambani, Times of India Power slipped 4.8% to Rs 64.75, while Reliance Infra hit the 5% lower circuit at Rs 377.45 on the to RCom's disclosure dated July 1, SBI has informed the company of its intent to report Anil Ambani's name to the Reserve Bank of India (RBI), setting the stage for another legal battle amid the company's ongoing insolvency proceedings under the National Company Law Tribunal (NCLT).The fraud classification is based on a 2020 forensic audit by BDO, which found irregularities and prompted SBI's internal panel to act. Canara Bank had earlier classified the loan as fraud in November 2024, but the Delhi High Court later set aside that its latest review, concluded on June 13, SBI's committee highlighted financial irregularities, including the alleged diversion of Rs 12,692 crore — about 41% of the total Rs 31,580 crore in loans — to connected parties. The report cited misuse of sanctioned funds, routing money through subsidiaries to mask transactions, and circular funding via inter-corporate deposits and intraday currently managed by a resolution professional under the Insolvency and Bankruptcy Code (IBC), said the fraud classification would have 'NA' impact, citing protections available once a resolution plan is in Ambani's legal team, Agarwal Law Associates, said SBI's action was passed ex parte and violated principles of natural justice. They argued that the show-cause notices were outdated under revised RBI norms, that Ambani held no executive role in the company's operations, and that the bank failed to share essential documents required for a proper lawyers noted that similar notices had been withdrawn against other non-executive and independent directors, alleging Ambani had been unfairly singled out. They have requested the withdrawal of SBI's order and a personal legal team also claimed the move defies several rulings by the Supreme Court, Bombay High Court, and RBI regulations, stating that Ambani's objections were ignored for nearly a year and that the bank failed to disclose the basis of its decision.