The State Bank of India declared the bank accounts of Reliance communication, Reliance Telecom and Reliance Infratel as a fraud. The accounts owned by Anil Ambani were reported to be non-profitable assets (NPA) and during a regular audit were found to be conducting activities such as siphoning of funds to different accounts and misappropriation of the balance. In simpler words, the accounts had taken the funds from the banks and failed to pay them back. That’s why these accounts were declared as a Non-Profitable Asset, as they couldn’t repay the money they had loaned.
SBI states that if an audit finds any such activities and the account is found to be an NPA, the Reserve Bank of India has to be notified within a week. Also, if the amount is less than 1 cr, the local police will be authorised to handle the matter. If the amount passes over 1 cr in debt, the issue will be handed to CBI for an enquiry. The total amount owed by Anil Ambani to the bank from these accounts is well over Rs 49,000 crores, with only Reliance Infratel owing Rs 12000 crores.
Anil Ambani is touted as the richest man in India after the huge success of his firm Reliance industries. The Jio initiative launched by the company gained a lot of popularity due to its free internet scheme. It is also the most popular telecom company right now as people have preferred it over all the other service providers. This is because the company provides a large amount of internet plan for a relatively cheap price. The company can get into a considerable amount of trouble if the State Bank of India issues a fraud investigation against it.
Fraud bank accounts undergo rigorous investigation about their funds, where they were transferred and what happened to them. In case illegal activities are found, the owner is arrested and the legal proceedings are conducted. A lot of millionaires in India have been found to conduct such activities and there have been numerous scams in the country in the past few decades. The RBI has tightened its security measures and made stricter regulations on bank accounts to reduce such incidents.