Bombay HC Rejects Anil Ambani Plea Against SBI Fraud Tag

The Bombay High Court has dismissed a petition filed by Anil Ambani challenging the State Bank of India’s (SBI) move to label his and Reliance Communications’ (RCom) loan accounts as fraud. A bench of Justices Revati Mohite Dere and Neela Gokhale said the plea had no merit. Reports suggest that the detailed order is awaited.

Fraud Allegations

SBI had classified the accounts as fraud in 2024, alleging that funds were misused through transactions that went against loan conditions. The bank claims this caused a loss of more than ₹2,929 crore. Bank of India also marked Ambani’s and RCom’s accounts under the same category.

Ambani’s Petition

In his plea, Ambani argued that SBI had not followed due process. He said the bank did not give him a hearing before passing the order. Some documents used in the decision were provided to him only six months later. His spokesperson said the next steps will be decided after reviewing the order.

CBI Complaint

Following SBI’s classification, the bank lodged a complaint with the Central Bureau of Investigation (CBI). The agency registered a case and searched Reliance Communications offices as well as Ambani’s residence in August 2025. The CBI has said its case is based on SBI’s claim of a ₹2,929.05 crore loss.

Timeline of Events

SBI first declared the accounts as fraud in November 2020. It filed a complaint with the CBI in January 2021, but the agency returned it after a Delhi High Court order to maintain status quo. In March 2023, the Supreme Court ruled that borrowers must be heard before fraud classification. SBI then withdrew its order in September 2023. After the RBI issued new guidelines in July 2024, the bank revived the process and again marked the accounts as fraud.

Read More: SEBI Report Reveals Low Household Participation in Securities at 9.5%.

Conclusion

With the High Court rejecting Ambani’s challenge, the fraud classification remains in effect and the CBI probe into the alleged loan irregularities will continue.

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