After State Financial institution of India’s transfer to reportedly classify Reliance Communications’ mortgage account as “fraud”, authorized counsel representing businessman Anil Ambani–chairman and managing director of Reliance Group–has strongly objected to what it described as an “ex-parte order” issued by the PSU lender’s Fraud Identification Committee (FIC). In a letter dated July 2 and addressed to prime SBI officers together with its chairman Challa Sreenivasulu Setty, the RCom counsel mentioned the transfer comes practically a yr after the lender failed to reply to the corporate’s final communication.
The matter pertains to SBI’s transfer to categorise the RCom account as fraud and report Ambani to the RBI, elevating considerations round procedural equity and regulatory consistency. The motion was taken by means of an ex-parte order–such orders are issued with out a hearing–and primarily based on a 2020 forensic audit associated to a 2016 mortgage, regardless of no current urgency or engagement from the financial institution for practically a yr.
Mentioning an earlier communication despatched to SBI on October 21, 2024, the RCom counsel said that the lender’s present trigger discover (SCN), dated December 20, 2023, was issued beneath guidelines that have been later absolutely changed by revised RBI Grasp Instructions on July 15, 2024. Because the earlier guidelines not apply, RCom had requested SBI to withdraw the SCN, mentioned the Reliance Group firm’s counsel. As SBI didn’t reply for practically a yr, the counsel mentioned its shopper, RCom, believed in good religion that the PSU financial institution had accepted this place and didn’t plan to take the matter additional.
Calling the event “surprising and procedurally flawed”, RCom’s authorized workforce famous that SBI’s December 2023 present trigger discover was issued beneath an earlier model of the RBI’s grasp instructions. These ones that have been fully outdated by the revised RBI Grasp Instructions issued on July 15, 2024. On that foundation, RCom had requested the withdrawal of the SCN again in October 2024.
“In gentle of the financial institution’s extended silence of virtually one yr, our shopper was beneath the bona fide perception that the matter had been settled and the financial institution had accepted our shopper’s place,” the RCom counsel famous.
The illustration additional highlighted that in related circumstances, allegations towards different noticees had been dropped on the identical grounds. “Our shopper, being equally positioned, should even be prolonged the identical aid,” it mentioned, including that Ambani was a non-executive director on RCom’s board and was not concerned in every day operations–which have been managed by the corporate’s key managerial personnel (KMPs).
“It’s our understanding that related allegations towards varied different noticees on this matter have been dropped on the bottom set out above,” mentioned the counsel, additionally attaching copies of the letters issued by SBI for reference.
The event mirrors previous regulatory actions that have been later stayed or overturned by courts, such because the Bombay Excessive Court docket’s rebuke of an identical transfer by Canara Financial institution in early 2025 and the continued enchantment towards the market regulator’s 2024 ban on Ambani, based on the RCom counsel.
The RCom authorized workforce has now formally requested the financial institution to withdraw its June 13, 2025 order, share all supporting paperwork, and permit a private listening to according to ideas of pure justice. Till then, the RCom counsel’s letter has referred to as on SBI to chorus from taking any additional motion, together with reporting Ambani’s title to the RBI, and to substantiate inside 5 days that it’s going to keep the June 13 order.
A duplicate of the communication has additionally been despatched to the RBI to apprise the regulator of the alleged procedural lapses by SBI, mentioned the RCom counsel.
The counsel underscored that this communication is issued “with out prejudice” to Ambani’s authorized rights and treatments.
