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SBI’s RCom Puzzle Faces Public Scrutiny: Nine Years, ₹31,580 Crore, and a Delayed Fraud Tag
Bank Bachao Desh Bachao Manch urges the Supreme Court to investigate State Bank of India’s 9-year delay in declaring Reliance Communications a fraud. Raises questions on fund diversion, loan enhancements, and a Kolkata property link.

Author: Neha Bodke
Published: July 7, 2025
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In a fresh push for public accountability, civil society forum Bank Bachao Desh Bachao Manch (BBDBM) has written to the Chief Justice of India, urging the Supreme Court to take suo motu cognizance of the State Bank of India’s nine-year delay in declaring Reliance Communications Ltd. (RCom), led by Anil Ambani as a fraudulent account. The letter, now in the public domain, questions the timing, transparency, and intent behind decisions involving thousands of crores of public funds.
The forum also raised concerns about possible suppression of red flags, repeated loan enhancements, and a suspicious Kolkata property deal potentially linked to the Ambani group. With SBI’s final fraud tag coming nearly nine years after its first loan exposure and well after peer banks acted, BBDBM’s letter marks a serious escalation in the debate on banking accountability and institutional failure.
A Timeline of Delay and Doubt
“SBI first extended credit to Reliance Communications in August 2016, and by August 26, 2016, the account was already classified as a non-performing asset,” a source told Kanal.
Despite this, SBI went on to sanction and enhance credit to RCom over the next four years.
“Between 2016 and 2020, SBI, as the lead lender, continued to sanction and enhance credit, eventually reaching a total consortium exposure of ₹31,580 crore, with SBI’s own exposure estimated at ₹5,000–6,000 crore,” the source further added.
“Public funds worth thousands of crores were extended while honest borrowers were chased for minor defaults,” said the forum in its letter.
Image: BBDBM’s official press release dated July 3, 2025 urges media to highlight SBI’s delayed fraud tag on RCom and demands judicial intervention.
Fraud Identified, Then Reversed
“The committee did initially mark RCom as fraudulent, but that decision was later reversed without public explanation,” sources told Kanal.
From December 2023 to September 2024, multiple show-cause notices and forensic audit reports were exchanged between the bank and RCom’s promoters.
“The notices and forensic reports were issued in line with directives from the Supreme Court and RBI guidelines,” sources confirmed to Kanal.
Finally, on 23 June 2025, SBI formally declared RCom’s account as fraudulent.
“The fraud classification cited fund diversion linked to loans granted as early as 2016,” another source told Kanal, noting that SBI acted “significantly later” than Canara Bank, which declared fraud in November 2024.
Spotlight on Sribriddhi Bhawan: A Property with a Backstory?
BBDBM’s letter raises an explosive secondary concern: the ownership history of 34, Jawaharlal Nehru Road in Kolkata, now known as Sribriddhi Bhawan, which houses SBI’s Zonal Offices, Regional Offices, and multiple branches. The forum has asked whether the building was previously owned by any Anil Ambani group entity, and if so, whether due diligence and proper valuation were conducted during its acquisition by SBI.
While no documentary proof has yet been released publicly, the forum’s demand for transparency signals growing suspicion about real estate linkages between corporate defaulters and public banks.
The Supreme Court Appeal: What BBDBM Demands
The 2-page formal appeal sent to the Hon’ble Chief Justice includes these major demands:
- Time-bound investigation, supervised by the Supreme Court
- Disclosure of sanction records and audit reports related to RCom’s loan journey
- Review of property transaction documents for Sribriddhi Bhawan
- Accountability of officials who allowed the exposure to spiral and delayed action
- Assurance that powerful defaulters are not shielded while common borrowers are penalized
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“The delay points to a possible nexus between corporate defaulters and decision makers in public financial institutions,” the letter states.
Image: BBDBM’s formal appeal to the Chief Justice of India seeking suo motu action against SBI’s nine-year delay in declaring RCom as fraudulent.
A Case of Regulatory Paralysis?
The issue exposes a broader systemic crisis in India’s public sector banking: how large corporations are treated with leniency and secrecy, while ordinary borrowers face aggressive recovery. BBDBM’s move comes amid increasing public distrust in regulatory and institutional mechanisms, especially when banks act only after court nudges or public outcry.
It’s also telling that RBI’s 2019 circular on fraud recognition timelines appears to have been inconsistently enforced. Delays in classifying and reporting frauds not only allow defaulters to continue operations but also prevent other banks from initiating legal recovery actions, leaving public money further exposed.
Civil Society Raises Its Voice
BBDBM is no stranger to such interventions. Formed as a watchdog collective of bank employees, retirees, activists, and citizens, the forum has previously flagged issues related to bank privatization, branch closures, NPA mismanagement, and regulatory capture.
Joint Convenors Soumya Datta and Biswaranjan Ray have emphasized that their current appeal is not about vendetta, but about restoring credibility to India’s banking system.
“We repose our full faith in the Hon’ble Supreme Court to ensure that justice is done and that no powerful entity is allowed to undermine the integrity of public institutions,” the letter concludes.
What’s Next?
With the Supreme Court yet to take formal cognizance, it remains to be seen whether BBDBM’s appeal sparks judicial intervention. What’s clear, however, is that the story of SBI and RCom is no longer confined to balance sheets and boardrooms, it’s now a matter of public conscience.
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