CBI Raids Anil Ambani’s Residence and Reliance Communications in ₹2,929-Crore Bank Fraud Case
Mumbai, India – August 24, 2025 – The Central Bureau of Investigation (CBI) conducted high-profile raids on August 23, 2025, targeting the Mumbai residence of industrialist Anil D. Ambani and premises linked to Reliance Communications Limited (RCom) in connection with an alleged ₹2,929-crore bank fraud case involving the State Bank of India (SBI). The raids, following the registration of a First Information Report (FIR) on August 21, 2025, mark a significant escalation in the scrutiny of Ambani and his now-insolvent telecom empire, as reported by The Hindu, NDTV, and India Today. The case, rooted in allegations of criminal conspiracy, misrepresentation, and diversion of loan funds, has reignited debates over corporate accountability in India’s financial sector.
Details of the CBI Raids
The CBI executed searches at multiple locations in Mumbai, including Ambani’s residence at Seawind, Cuffe Parade, and RCom’s corporate offices, starting early Saturday morning. A CBI team from Delhi, armed with search warrants issued by a special CBI court in Mumbai on August 22, 2025, aimed to gather crucial documents and digital evidence to probe allegations of loan misuse and fund diversion, according to Times of India. Sources indicate that six to eight officials conducted the searches, which concluded by early afternoon at Ambani’s residence, with the businessman and his family present during the operation.
The agency’s actions stem from a complaint filed by SBI’s Mumbai branch, accusing RCom, Ambani, unidentified public servants, and others of causing a wrongful loss of ₹2,929.05 crore to the bank through fraudulent practices. The FIR, registered under sections for criminal conspiracy, cheating, and criminal breach of trust, alleges that RCom misrepresented facts to secure credit facilities, diverted loan funds through intercompany transactions, and engaged in irregular financial practices, such as bill discounting and capital advance write-offs. The Hindu BusinessLine reported that the searches targeted evidence of these transactions, including potential routing of funds through shell companies.
Background of the Allegations
The SBI’s exposure to RCom includes a fund-based principal outstanding of ₹2,227.64 crore, accrued interest and expenses since August 26, 2016, and a non-fund-based bank guarantee of ₹786.52 crore, as detailed by Minister of State for Finance Pankaj Chaudhary in a Lok Sabha reply last month (NDTV). The bank’s internal probe, supported by a forensic audit covering April 2013 to March 2017, uncovered a “complex web of fund movements” across Reliance group entities, leading to the account’s classification as fraud on June 13, 2025, in line with the Reserve Bank of India’s (RBI) Master Directions on Fraud Risk Management.
The fraud classification followed a turbulent history. SBI initially labeled RCom’s account as fraudulent on November 10, 2020, but reversed this on September 2, 2023, following a Supreme Court ruling on March 27, 2023, that required adherence to natural justice principles. After issuing show-cause notices in November 2023, March 2024, and September 2024, SBI reclassified the account as fraud, notifying the RBI on June 24, 2025, and lodging the CBI complaint. The bank alleged that a ₹1,500-crore term loan sanctioned in September 2012 and a ₹565-crore short-term loan in August 2016 were misused, with funds diverted to repay other lenders, including Chinese banks and bondholders, totaling ₹31,580 crore across multiple entities (DNA India).
Anil Ambani’s Response
Anil Ambani, through a spokesperson, strongly denied the allegations, asserting that he is being “selectively singled out.” In a statement reported by CNBC TV18, the spokesperson clarified that the SBI complaint pertains to events over a decade old, when Ambani served as a non-executive director of RCom with no involvement in day-to-day management. “It is pertinent to note that SBI has already withdrawn proceedings against five other non-executive directors,” the statement read, adding that Ambani has challenged the fraud classification before judicial forums, including the National Company Law Tribunal (NCLT) and the Supreme Court, where the matter remains sub judice. The spokesperson emphasized that RCom is currently managed by a Committee of Creditors led by SBI and overseen by a resolution professional under the Insolvency and Bankruptcy Code (IBC), 2016.
Broader Context and Enforcement Directorate Probe
The CBI raids come weeks after the Enforcement Directorate (ED) questioned Ambani for nearly 10 hours on August 5, 2025, in a related money-laundering probe involving alleged bank loan frauds worth over ₹17,000 crore across Reliance Group companies (The News Minute). The ED’s investigation, which includes a ₹3,000-crore loan fraud case with Yes Bank, alleges wrongful fund diversion and quid pro quo arrangements. The agency conducted raids on July 24, 2025, at 50 firms linked to Ambani’s group, and made its first arrest on August 2, 2025, detaining Partha Sarathi Biswal of Biswal Tradelink Pvt Ltd for submitting fake bank guarantees worth ₹68.2 crore (NDTV).
RCom, once a major telecom player, has been under financial distress since exiting the consumer mobile business in December 2017 following the disruptive entry of Reliance Jio. The company is undergoing Corporate Insolvency Resolution Process (CIRP) under the IBC, with a resolution plan approved by creditors and filed with the NCLT Mumbai on March 6, 2020, awaiting final approval. Additionally, SBI has initiated a personal insolvency process against Ambani, which is also pending before the NCLT.
Financial and Legal Implications
The case highlights systemic issues in India’s corporate lending landscape, particularly with public sector banks. SBI’s total exposure to RCom, combined with loans from 26 Indian lenders (₹19,694.33 crore) and international creditors like Chinese banks (₹13,558.13 crore), underscores the scale of RCom’s debt crisis (The Hindu). The CBI’s investigation will focus on whether loan funds were siphoned off through shell companies or used to service unrelated debts, a charge that could have severe legal consequences for Ambani and other implicated parties.
The raids also intensify scrutiny on Ambani, once a leading telecom tycoon, whose Reliance ADA Group faces multiple probes. Posts on X, such as by @TimesNow, noted Ambani’s claim of being “selectively singled out,” while @NDTVProfitIndia highlighted his denial of charges, reflecting polarized public sentiment. The case’s outcome could influence ongoing insolvency proceedings and impact creditor confidence in India’s telecom sector.
Political and Social Reactions
The raids have drawn varied responses. BJP leaders, including Union Minister Pankaj Chaudhary, have emphasized the government’s commitment to tackling financial fraud, while opposition figures like Congress MP Jairam Ramesh accused the BJP of selective enforcement, pointing to the withdrawal of proceedings against other RCom directors. On X, @IndianExpress reported the raids as a “major escalation,” with users debating whether the action signals a broader crackdown on corporate defaulters or a targeted move against Ambani.
What’s Next?
The CBI’s investigation is ongoing, with the agency expected to analyze seized documents and digital evidence to establish the extent of fund diversion. Further raids or summons could follow, especially as the ED’s parallel probe deepens. Ambani’s legal challenges, including NCLT hearings and potential Supreme Court proceedings, will be critical in determining his personal and corporate liability. The case also underscores the RBI’s push for stricter fraud risk management, as banks like SBI and Bank of India, which recently tagged RCom’s accounts as fraudulent (NDTV), intensify efforts to recover losses.
As India’s financial regulators and investigative agencies tighten their grip on corporate misconduct, the Anil Ambani case stands as a high-profile test of accountability. With RCom’s insolvency process nearing a resolution and Ambani’s reputation under scrutiny, the coming weeks will likely reveal the full scope of the alleged fraud and its implications for India’s corporate landscape.
For More News Updates Follow www.tconews.in
