Anil Ambani Fraud Case Update: Bombay HC Quashes Stay Order, Proceedings to Continue

The Bombay High Court (HC) on Monday delivered a judgment setting aside an interim order that had stayed proceedings to classify Anil Ambani and Reliance Communications Ltd's bank accounts as fraud, as per PTI report.  

A division bench quashed the December 2025 single bench order, describing it as illegal and perverse. 

Bombay HC Division Bench Quashes Stay Order in Anil Ambani Case 

A division bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad allowed appeals filed by 3 public sector banks: Indian Overseas Bank, IDBI Bank and Bank of Baroda and auditor firm BDO India LLP against the December 2025 interim order.  

The single bench order had granted interim relief to Ambani and his company, staying all present and future action by the banks. The division bench, while quashing the single bench order, termed it illegal and perverse. Ambani's counsels sought the high court to stay its order so that they could approach the Supreme Court, but the request was declined. 

Background of the Single Bench Order 

The December 2025 single bench order had granted interim relief to Ambani and Reliance Communications, citing violations of mandatory RBI rules. The order had described the case as a classic instance of banks waking up from deep slumber after years.  

The interim relief stayed proceedings initiated by the banks to classify the accounts as fraud, based on a forensic audit report. 

Read More: Anil Ambani Pledges Not to Leave India Without Court Permission Amid RCOM Fraud Probe! 

Banks' Challenge to the Interim Relief 

The 3 public sector banks challenged the single bench order in January 2026. In their appeal, they contended that the forensic audit leading to the accounts being classified as fraud was legally valid and based on serious findings of fund siphoning and misutilisation.  

The banks argued that this was recorded in the report submitted by the audit firm BDO LLP. They sought the division bench to quash the single bench's interim order, claiming it was perverse. 

Grounds Raised by Anil Ambani 

Ambani had challenged before the single bench the show-cause notices issued by Indian Overseas Bank, IDBI Bank and Bank of Baroda seeking to declare his and Reliance Communications' accounts as fraud accounts.  

As interim relief, he sought a stay of the notices and an injunction against any coercive action on the ground that BDO LLP was not qualified to conduct the forensic audit, as its signatory was not a chartered accountant.  

Ambani claimed BDO LLP was an accounting consultant firm and not an audit firm. The single bench had initially agreed with this contention and stayed the banks' action. 

Conclusion 

The Bombay High Court division bench has quashed the December 2025 interim order that stayed fraud proceedings against Anil Ambani and Reliance Communications. The court allowed appeals filed by 3 public sector banks and auditor BDO India LLP, setting aside the single bench order that had granted relief on grounds related to the forensic auditor's qualifications. The division bench declined to stay its order, allowing the banks to proceed with the matter. 

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