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Reliance Communications Stock Gains Despite BoB Labeling Loan Account as ‘Fraud’

Reliance Communications Surges Over 3% Despite Fraud Tag by Bank of Baroda

Written By : Bhavesh Maurya
Reviewed By : Shovan Roy

The Reliance Communications Share Price has seen extreme volatility due to ongoing insolvency proceedings. Reliance Communications (RCom) shares defied negative news on Friday, September 5, as investors pushed the stock higher even after Bank of Baroda (BoB) classified the company’s loan account and that of its former promoter, Anil Ambani, as ‘fraud.’

Stock Performance Amid Controversy

The stock surged as much as 3.62% in intraday trade to hit Rs 1.43 on the National Stock Exchange (NSE), compared with its previous close of Rs 1.38. Trading volumes were active, with nearly 11 lakh buy orders against 4 lakh sell orders. By 10:30 a.m., RCom was still holding gains, quoted at Rs 1.40, up 1.45%.

Developments in the Anil Ambani fraud case continue to raise questions about corporate governance. The resilience comes despite a regulatory setback, highlighting speculative interest in the Anil Ambani Group (ADAG) stock, which has been under insolvency proceedings since 2019.

Bank of Baroda Declares ‘Fraud’

In an exchange filing on Thursday evening, Reliance Communications revealed that it had received a letter dated September 2, 2025, from BoB. The lender said it has decided to classify the company’s loan accounts, as well as those of Anil Ambani in his capacity as promoter and former director, as fraudulent.

RCom clarified that its business and operations have been under the control of Resolution Professional (RP) Anish Niranjan Nanavaty since June 2019, as part of the corporate insolvency resolution process (CIRP) under the Insolvency and Bankruptcy Code (IBC). 

Bank of Baroda has taken legal steps that could further affect the financial position of the group. Consequently, Ambani ceased to be a director. The company added that it is seeking legal advice on the next steps regarding the BoB development.

Previous Fraud Classifications

BoB is not the first lender to tag RCom’s accounts as fraudulent. Earlier, both State Bank of India (SBI) and Bank of India (BoI) had taken similar action, citing alleged fund diversion at the company that dated back to 2016.

Market analysts are keeping a close eye on ADAG Stocks Today, as investor sentiment remains fragile. These actions have hindered efforts to develop a successful resolution plan, with little progress observed since the initiation of insolvency proceedings.

ADAG Stocks Trade Mixed

Other ADAG counters showed mixed trends in Friday’s session. Reliance Infrastructure fell over 2% to Rs 281 on the BSE, while Reliance Power, after dipping to Rs 45.55, recovered slightly to trade 0.5% higher. 

The divergence suggests selective investor interest across the group’s distressed stocks, with RCom continuing to attract speculative buying despite its insolvency status.

Also read: ED Uncovers Rs. 68 Crore Fake Bank Guarantee Scam Linked to Anil Ambani Group

Outlook

The classification of loans as fraud further complicates RCom’s resolution path under IBC, and the outcome will depend on ongoing legal and regulatory proceedings. The prolonged RCom Insolvency case highlights the challenges in resolving large corporate debts.

For now, the stock’s sharp movements underline its status as a speculative play, with fundamentals overshadowed by corporate and legal challenges.

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