Anil Ambani categorically denies all allegations and charges of the Bank of India and shall pursue remedies available to him in accordance with legal advice, the beleaguered businessman insisted through a statement on Sunday.
As per the statement released by company’s spokesperson, the action by Bank of India to classify the loan account of Reliance Communications Limited (RCom) along with Anil Ambani, pertains to matters dating back more than 10 years, as per disclosures and records available in the public domain.
“It is pertinent to note that Anil Ambani served only as a Non-Executive Director on the Board of RCom and resigned from this position in 2019, over six years ago,” the statement read. “He had no role whatsoever in the day-to-day operations or decision-making of the company. However, Ambani is being selectively singled out.”
It is a matter of record that RCom had a lender consortium comprising 14 banks. After an inordinate lapse of more than 10 years, select lenders have now chosen to initiate proceedings in a staggered and selective manner.
Bank of India has classified RCom’s account without following the principles of natural justice. While a Show Cause Notice was issued to Anil Ambani, the requisite documents were not furnished to him. It further deprived him of the opportunity of a personal hearing in the matter. These actions are contrary to the RBI regulations issued in July 2024, as well as to well-established law and the judgments of the Hon’ble Supreme Court and the Hon’ble Bombay High Court.
Notably, Bank of India, after issuing a show-cause Notice to 13 directors and Key Managerial Personnel (KMPs) of RCom, unilaterally withdrew the same against all others. However, it selectively continued the proceedings against Mr. Anil D. Ambani without following the principles of natural justice.
RCom, once a key player in India’s telecom sector, entered insolvency proceedings in 2019 after failing to service its debt of over Rs 46,000 crore. Several banks, including Bank of India, were part of the consortium of lenders.
The current action by Bank of India comes amid heightened scrutiny of non-performing assets (NPAs) and accountability of directors in large corporate defaults.