Shares of Anil Ambani-owned Reliance Infrastructure Ltd and Reliance Power Ltd dropped sharply on Thursday, even as both companies asserted that State Bank of India’s (SBI’s) move to label Reliance Communications Ltd’s (RCom’s) loan account as fraud has no impact on their operations. Reliance Infra slipped 5 per cent to close at Rs 377.45, while Reliance Power declined 3.66 per cent to Rs 65.51.
In separate regulatory filings, RInfra and RPower clarified that they are independent listed entities with no business or financial linkage to RCom. The recent action by SBI has absolutely no impact on the business operations, financial performance, shareholders, employees or any other stakeholders of Reliance Infrastructure or Reliance Power, the companies said.
They further highlighted that Anil D Ambani is no longer on the Board of Directors of either company, asserting that any regulatory or legal action related to RCom does not influence their governance or operations.
The clarification came after RCom informed stock exchanges that it had received a letter from SBI dated June 23, 2025 (received on June 30), stating that the bank had decided to classify the company’s loan account as fraud and to report the name of its former director, Anil Ambani, to the Reserve Bank of India (RBI).
RCom, currently undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code (IBC), said the loans in question relate to the pre-CIRP period. The company said that the resolution plan has already been approved by its Committee of Creditors and is awaiting final approval from the National Company Law Tribunal (NCLT), Mumbai.
In its communication, SBI stated, “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.”
Accordingly, SBI said that its Fraud Identification Committee has decided to classify RCom’s loan account as fraud. Moreover, Section 238 of the Insolvency and Bankruptcy Code (IBC) ensures that its provisions override any conflicting laws. In view of these legal protections, the company does not expect the fraud classification to have any material impact. It is also in the process of seeking legal advice to determine the appropriate next steps.
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