SBI Declares Reliance Communications Loan as Fraud: No Impact on Reliance Infrastructure or Power

Reliance Infrastructure and Reliance Power have assured stakeholders that the State Bank of India's recent designation of Reliance Communications' loan account as fraudulent will not impact their business operations or financial health. According to separate exchange filings, the Anil Dhirubhai Ambani Group companies remain unlinked to Reliance Communications, both financially and operationally.

The companies have emphasized their independent operations, clarifying that Anil D. Ambani is no longer on their boards. The move by SBI also included the decision to report Anil Ambani's name to the Reserve Bank of India, following extant guidelines due to deviations in the utilization of a total loan of Rs 31,580 crore by Reliance Communications.

The bank's Fraud Identification Committee identified these deviations, leading to the classification of the loan account. However, Reliance Infrastructure and Reliance Power reiterated their independence and unaffected governance, management, and operations.

(With inputs from agencies.)