In a dramatic escalation of India’s banking fraud crackdown, CBI conducted coordinated raids at Anil Ambani’s Mumbai home and Reliance Communications’ key offices today. The action targets alleged embezzlement in a massive loan from Bank of Baroda, marking the second CBI case against the debt-ridden telecom giant.
Bank of Baroda’s whistleblower complaint triggered the FIR, detailing how RCom promoters, led by Anil Ambani, allegedly manipulated funds exceeding Rs 2,220 crore. Charges under criminal breach of trust, forgery, and anti-corruption laws highlight a scheme where borrowed money was routed to connected entities via fictitious transactions. Auditors and bank officials stand accused of complicity in hiding the rot through falsified records.
The saga traces back to 2017 when the loan turned NPA. Ambani’s legal intervention secured a court stay against fraud classification, but the Bombay High Court revoked it last week, unleashing the CBI hounds. Search teams combed through files, computers, and records, unearthing evidence that could redefine corporate accountability.
Separate from the prior SBI-led consortium case, this BoB loan originated from a trio of lenders, two of which have since merged. RCom’s financial house of cards has long teetered, with repeated restructurings failing to stem losses. Today’s developments signal regulators’ zero-tolerance stance on willful defaulters.
Industry watchers note this as a pivotal moment for public sector banks recovering NPAs. As probes deepen, expect ripples across telecom and finance sectors. Anil Ambani, whose Reliance empire once symbolized Indian ambition, now navigates a maze of probes that threaten his reputation and remaining assets. The full story is yet to unfold.