After SBI and BoI, BoB classifies RCom, Anil Ambani a/c as fraud

MUMBAI: Bank of Baroda has classified Reliance Communications (RCom) and former non-executive director Anil Ambani’s loan accounts as ‘fraud’, adding to similar actions by SBI and Bank of India.

The move, disclosed by RCom to the BSE and NSE on Sept 4, followed a forensic audit by BDO India LLP that flagged large-scale irregularities.

The audit found systematic misuse of borrowed funds, diversion of loan proceeds through unauthorised channels, related-party dealings without commercial rationale, recycling of money to mask fund flows, irregular joint venture entries and cross-transactions with group firms.