Synopsis:
On Friday, the shares of a prominent international provider of communication services fell after Bank of Baroda had officially classified the loans of Reliance Communications and its former director, Anil Ambani, as fraudulent.
The shares of the telecommunication firm engaged in offering a comprehensive suite of telecom services, covering wireless, wired connections, domestic, and direct-to-home services, gained attention after the Bank of Baroda had categorized the loans with Reliance Communications and former director, Anil Ambani, as fraud.
With a market capitalization of Rs.389.94 crore, the shares of Reliance Communications Limited were trading at Rs.1.38, down by 3.50 percent from the previous day’s closing price of Rs.1.43.
Fraudulent News
As per recent reports, Bank of Baroda, a major public sector bank, has identified the loan accounts of Reliance Communications and its former director, Anil Ambani, as fraudulent. According to Anil Ambani’s spokesperson decision of the bank to identify RCom’s loan account and the former director as fraud is linked to issues from 2013, as shown in public records.
The issue is connected to borrowings made before the company entered the corporate insolvency resolution process. The company clarified that this decision was taken solely by the bank and relates to loans and credit facilities taken before the start of the corporate insolvency resolution process.RCom was part of 14 banks; for more than ten years, certain lenders had decided to take action against Anil Ambani. In June 2025, SBI declared RCom’s loans as fraudulent, and later in August, Bank of India did the same, also naming Anil Ambani over claims of fund misuse and breaking loan rules.
RCom is undergoing the corporate insolvency resolution process as per the Insolvency and Bankruptcy Code, 2016, with the resolution plan passed by the committee of creditors led by SBI waiting for approval from the NCLT in Mumbai.
The company said these loans will be settled either through a resolution plan or by liquidation under the IBC. Currently, At present, RCom is being managed by resolution professional Mr. Anish Niranjan Nanavaty.
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Business & Outlook
Reliance Communications Limited is a major global telecom company has operations in a large subsea cable network, cloud services, enterprise solutions in India and abroad, data centers, and national long-distance services. The company mainly serves corporates, carriers, and government clients with connectivity, hosting, and cloud solutions.
The company reported operating revenue of Rs.83 crore in Q1FY26, down from Rs.97 crore in the same quarter last year. Net loss increased to Rs.2,560 crore compared to Rs.2,220 crore earlier.
Written By: Jhanavi Sivakumar
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