<h1>SBI declares telecom company loan fraud involving Rs 12,692 crore misappropriation to connected parties</h1> State Bank of India classified a telecommunications company's loan account as fraud and reported a former director to the Reserve Bank of India. The company received total loans of Rs 31,580 crore from banks, with SBI finding deviations in fund utilization involving complex movements across group entities. The Fraud Identification Committee discovered that Rs 12,692 crore was paid to connected parties not aligned with sanctioned purposes, including misappropriation through inter-corporate deposits totaling Rs 41,863 crore. The committee identified manipulation of accounts through fictitious entries and intraday limit cycling. The company is currently under corporate insolvency resolution process since 2019.