India’s Central Bureau of Investigation (CBI) has launched a criminal probe into Reliance Communications (RCOM) and its promoter Anil Ambani, raiding multiple premises across the country in connection with an alleged ₹2,000 crore ($240 million) bank fraud.
The case originates from a complaint filed by India’s largest lender, State Bank of India (SBI), which accuses RCOM of misusing loans and causing significant losses to the banking system. The FIR (First Information Report) registered by the CBI names RCOM and related entities as central to the alleged diversion of funds.
RCOM, once a flagship telecom company of the Reliance Anil Dhirubhai Ambani Group (ADAG), has been mired in debt and financial stress for years, culminating in insolvency proceedings in 2019. The new investigation comes as Ambani — younger brother of Reliance Industries Chairman Mukesh Ambani — faces mounting legal and regulatory challenges both in India and abroad.
The raids also follow earlier scrutiny by India’s Enforcement Directorate (ED), which has been investigating alleged money laundering and irregularities linked to RCOM’s loans and guarantees. The ED’s probe had flagged suspected fund diversions and improper corporate guarantees provided to group entities.
The CBI’s move underscores India’s growing emphasis on tackling large-scale financial frauds and strengthening corporate governance. Analysts say the high-profile case could have ripple effects on India’s banking sector, which has struggled with non-performing loans tied to corporate defaults over the past decade.
Anil Ambani, once ranked among the world’s richest billionaires, has seen his business empire shrink dramatically amid mounting debt and intense competition in India’s telecom sector. Neither Ambani nor Reliance Communications has publicly commented on the latest CBI raids.
The probe places renewed international focus on India’s efforts to hold corporate leaders accountable and signals heightened regulatory oversight of high-value financial transactions.
