BIG blow to Anil Ambani, as shares of THESE two companies decline by 5% due to...

Shares of Anil Ambani's Reliance Infrastructure Ltd and Reliance Power Ltd declined sharply on Thursday, after the State Bank of India (SBI) officially labelled Reliance Communications (RCom) as fraudulent and named former director Anil Ambani in the case, according to the Times of India. Reliance Power fell 3.66 percent to Rs 65.51, while Reliance Infra fell 5% to settle at Rs 377.45.

RInfra and RPower made it clear in their own regulatory filings that they are independent listed companies that have no financial or commercial ties to RCom.  Reliance Infrastructure and Reliance Power stated that the latest SBI action has no bearing whatsoever on their business operations, financial performance, shareholders, employees, or any other stakeholders.

 They added that Anil Ambani is no longer a member of either company's board of directors and that their governance and business practices are unaffected by any legal or regulatory action pertaining to RCom.

The clarification followed RCom's announcement to stock exchanges that it had received a letter from SBI on June 23, 2025 (received on June 30), in which the bank stated that it had chosen to report the name of its former director, Anil Ambani, to the Reserve Bank of India (RBI) and classify the company's loan account as fraudulent.

The clarification followed RCom's announcement to stock exchanges that it had received a letter from SBI on June 23, 2025 (received on June 30), in which the bank stated that it had chosen to report the name of its former director, Anil Ambani, to the Reserve Bank of India (RBI) and classify the company's loan account as fraudulent.

According to RCom, which is presently going through the Corporate Insolvency Resolution Process (CIRP) in accordance with the Insolvency and Bankruptcy Code (IBC), the debts in question date back to before the CIRP.  The resolution plan has been authorized by the business's Committee of Creditors and is pending final clearance from the National Business Law Tribunal (NCLT), Mumbai, according to the company.

 In its letter, SBI said, "We have taken cognizance of the responses (wherever received) to our show cause notice and, after due examination, concluded that sufficient reasons have not been provided to explain the irregularities or non-adherence to the loan terms by RCom."

As a result, SBI said that RCom's loan account has been classified as fraudulent by its Fraud Identification Committee.  Furthermore, the Insolvency and Bankruptcy Code's (IBC) Section 238 guarantees that its requirements take precedence over any laws that may clash.  The business does not anticipate that the fraud classification will have a significant effect given these legal safeguards.  In order to decide on the best course of action, legal counsel is also being sought.