
Shocked: Anil Ambani on SBI’s ‘Fraud’ Tag on RCOM’s Loan Account
In a surprising turn of events, Agarwal Law Associates, the legal counsel for Anil Ambani, has expressed shock over SBI’s move to classify the Reliance Communications (RCOM) loan account as “fraud”. This development has raised many questions and concerns about the nature of the transactions and the roles of the individuals involved.
As per NDTV Profit, Agarwal Law Associates, in a statement, said that Anil Ambani was serving only as a non-executive director at the time of the alleged transactions. The firm added that Ambani had no role in the day-to-day functioning or operations of the now-defunct telecom company.
This statement comes in response to the State Bank of India’s (SBI) decision to classify RCOM’s loan account as “fraud”. The bank’s move is reportedly based on the findings of a forensic audit conducted by it. The audit allegedly revealed that RCOM had siphoned off funds meant for loan repayment, leading to a significant default.
Anil Ambani’s counsel has called for the withdrawal of the “fraud” tag, citing the lack of evidence linking Ambani to the alleged transactions. The statement from Agarwal Law Associates reads:
“We are shocked by the SBI’s decision to classify the RCOM loan account as ‘fraud’. The decision is arbitrary, unfair, and without any basis in fact or law. Anil Ambani was only a non-executive director of RCOM at the relevant time and had no role in the day-to-day functioning or operations of the company. He was not involved in the management of the company’s finances or the decision-making process regarding the loan.”
The firm’s statement further emphasizes that Ambani’s role was limited to attending board meetings and providing guidance as a non-executive director. It is unclear what led SBI to conclude that Ambani was involved in the alleged fraudulent activities.
This development has raised questions about the fairness and transparency of SBI’s decision-making process. It is evident that SBI’s action has significant implications for Anil Ambani’s personal and professional reputation. The “fraud” tag can have far-reaching consequences, including damage to his business relationships and legal liabilities.
The controversy surrounding RCOM’s loan account is not new. The company has been struggling to repay its debts for several years. RCOM’s debt stood at over ₹46,000 crore at the end of March 2020. The company’s financial woes have been exacerbated by the decline of the telecom sector and the intense competition it faces from other players.
In recent years, RCOM has taken several steps to restructure its debt and stem the financial bleeding. The company has sold off several assets, including its media and entertainment business, to raise funds and reduce its debt burden. However, despite these efforts, RCOM’s financial situation remains precarious.
The classification of RCOM’s loan account as “fraud” by SBI is likely to further compound the company’s financial woes. The move may lead to a complete write-off of the debt, which could have significant implications for the company’s future prospects.
In conclusion, the shock expressed by Anil Ambani’s counsel over SBI’s decision to classify RCOM’s loan account as “fraud” is understandable. The lack of evidence linking Ambani to the alleged transactions and his limited role as a non-executive director raise serious questions about the fairness and transparency of SBI’s decision-making process.
As the controversy surrounding RCOM’s loan account continues to unfold, it is essential to ensure that the decision-making process is fair, transparent, and based on evidence. The consequences of such a tag can be severe, and it is crucial to ensure that the rights of all parties involved are protected.