<h1>State Bank classifies telecom firm's 31,000 crore loan as fraudulent, reports director to RBI</h1> State Bank of India classified a telecom firm's loan account as fraudulent and reported a former director to the Reserve Bank of India. The bank found improper utilization of loans totaling over 31,000 crore rupees, involving complex fund movements across multiple group entities. Investigation revealed that 44% of funds were used for loan repayments and 41% went to connected parties, deviating from sanctioned purposes. The bank identified fictitious transactions, book manipulation, and fund diversions through inter-corporate deposits. The former director's legal team protested the classification, claiming it violated guidelines and natural justice principles. The company is currently under insolvency proceedings.