Reliance Communications SBI review confirms wilful-default status

Reliance Communications Limited was classified as a wilful defaulter after State Bank of India’s review committee confirmed the decision on September 16, 2026 and directed reporting of Reliance Communications and erstwhile promoter Anil Dhirubhai Ambani to Credit Information Companies and the Reserve Bank of India list. SBI said the account became a non-performing asset on August 26, 2016.

Why did SBI classify Reliance Communications as a wilful defaulter?

SBI’s Review Committee for Identification of Wilful Defaulters concluded on September 16, 2026 that events of wilful default had occurred at Reliance Communications and in relation to Anil Dhirubhai Ambani, described in the proceedings as promoter, chairman and non-executive director under suspension. The order directed reporting of both names to Credit Information Companies, or CICs, and the Reserve Bank of India, or RBI, wilful-defaulter list.

The committee said Reliance Communications defaulted on repayment obligations agreed with lenders and that its account was classified as a non-performing asset, or NPA, on August 26, 2016 under RBI guidelines. The decision cited RBI criteria 3.1.xviii.A.b, 3.1.vii.b and 3.1.vii.c, with the order also identifying earlier versions of those criteria.

The review followed an identification process that SBI said began on June 3, 2021, when its Wilful Defaulter Identification Committee, or WDIC, examined evidence. Show-cause notices were issued on October 20, 2023, and the WDIC proposed classification on March 2, 2026 after considering submissions made on behalf of Anil Dhirubhai Ambani.

What did SBI decide on Anil Ambani’s objections?

SBI rejected the representations submitted through Anil Dhirubhai Ambani’s legal representative, saying they did not provide a specific, substantive or allegation-wise response to the October 20, 2023 show-cause notice. The review committee said the April 21, 2026 and September 12, 2026 representations substantially repeated earlier submissions.

The representative sought the October 15, 2020 forensic audit report, underlying bank and company records, committee papers and entity-wise and bank-wise details of alleged Rs 13,668 crore referenced in the show-cause notice. The representations argued that the requested material had not been supplied, sought withdrawal of the March 2, 2026 WDIC order, and requested a new hearing after fuller disclosure.

The review committee disagreed, saying SBI enclosed the complete 389-page forensic audit report with its October 24, 2025 reminder, alongside 178 pages of annexures and exhibits. It said the legal representative acknowledged and responded to the material on November 14, 2025, while the additional documents requested were not relied upon for the show-cause notice or the WDIC decision.

SBI also said its December 23, 2025 letter gave 21 days for a clear, point-wise reply supported by explanations and documents. According to the committee, the January 5, 2026 communication did not address SBI’s clarification or provide an event-wise response, leaving the submissions focused on procedural objections rather than allegations on their merits.

Did Reliance Communications attend SBI’s hearing?

Neither Reliance Communications nor Anil Dhirubhai Ambani attended the personal hearing offered by SBI’s review committee on September 16, 2026. The proceedings record lists Reliance Communications as “not represented” and the promoter-director as “not present”, although the committee received written representations from the promoter-director’s legal representative.

SBI said it served the March 2, 2026 WDIC resolution through a notice dated April 6, 2026, inviting a written representation to the review committee. The bank then issued a September 4, 2026 hearing notice for the September 16 meeting; the promoter-director’s representative replied on September 12, while the committee recorded no reply from Reliance Communications.

The representation said the hearing notice was received on September 7, 2026 and allowed only nine days to prepare, which it argued was insufficient without the other requested records. The committee held that the forensic audit report and annexures on which SBI relied had already been supplied and that the corporate insolvency process did not excuse the absence of a specific reply.

What does the SBI decision mean for Reliance Communications’ insolvency process?

Reliance Communications said it is undergoing the corporate insolvency resolution process, or CIRP, under the Insolvency and Bankruptcy Code, 2016. Its committee of creditors had approved a resolution plan, which was awaiting approval by the National Company Law Tribunal, Mumbai Bench, when Reliance Communications received SBI’s October 31, 2026 letter on November 3, 2026.

Reliance Communications said the SBI facilities concerned arose before CIRP began and therefore must be resolved through a resolution plan or liquidation, as applicable under the Code. The company said the classification was not expected to affect it, citing the CIRP moratorium under Section 14(1)(a) and protections described in Section 32A after tribunal approval of a qualifying plan.

Reliance Communications said Section 32A could provide immunity to a corporate debtor for pre-CIRP offences from the date the tribunal approves a resolution plan, provided the plan results in the prescribed change in management or control. This was the company’s statement about the potential effect of the insolvency framework, rather than an SBI finding on the September 16, 2026 classification.

The company said its resolution professional was examining the October 31, 2026 communication and seeking legal advice on the next course of action. SBI said names were being forwarded to CICs for necessary action and reserved the right to publish photographs in newspapers stating that it had declared the parties wilful defaulters under RBI guidelines.

Conclusion

SBI’s September 16, 2026 review decision completed the internal process disclosed by Reliance Communications: the committee confirmed the proposed wilful-defaulter classification after rejecting procedural objections and finding no substantive event-wise response. The order covers reporting of Reliance Communications and Anil Dhirubhai Ambani to CICs and the RBI list, against the background of the August 26, 2016 NPA classification.

The next disclosed milestone is the National Company Law Tribunal, Mumbai Bench’s decision on the resolution plan already approved by the committee of creditors. Reliance Communications also said its resolution professional is seeking legal advice after receiving SBI’s October 31, 2026 letter on November 3, 2026, while SBI has retained the option of a newspaper notice under RBI guidelines.