Delhi High Court Questions Union Bank on Anmol Ambani's Fraud Declaration

The Delhi High Court has raised questions regarding Union Bank of India's decision to declare the account of Jai Anmol Ambani's company as fraudulent, as per news reports.  

The court has asked the bank to clarify if Anmol Ambani was given a chance to respond before this declaration. 

Union Bank's Fraud Allegation Against Anmol Ambani 

Union Bank of India classified the account of Jai Anmol Ambani's company as fraudulent, citing a wrongful loss of ₹228.06 crore. This led to the Central Bureau of Investigation (CBI) initiating criminal proceedings against Anmol Ambani.  

The bank's decision has been challenged by Ambani, who claims that no show cause notice was issued, violating principles of natural justice. 

Justice Jyoti Singh of the Delhi High Court has directed the bank to file a short affidavit explaining whether a show cause notice was issued. The court emphasised the importance of giving the accused a chance to respond, referencing the Supreme Court's decision in State Bank of India v Rajesh Agarwal, which mandates prior notice before declaring an account fraudulent. 

CBI's Case and Allegations 

The CBI has accused Reliance Home Finance Ltd (RHFL), where Anmol Ambani was a director, of borrowing substantial funds and failing to meet repayment obligations. A forensic audit allegedly revealed that the loan proceeds were diverted and misused, leading to the account becoming a non-performing asset (NPA). Union Bank's complaint to the CBI includes allegations of criminal conspiracy, cheating, and misconduct. 

Read More: Anil Ambani Group Companies Stocks Fall Up To 5% after CBI Files Fraud Case Against Anil Ambani’s Son! 

Legal Representation and Proceedings 

Anmol Ambani's case is being argued by Senior Advocate Rajiv Nayar, with the petition filed through advocates Rishi Agrawala and Tejasvi Chaudhry of Agarwal Law Associates. The court has scheduled the next hearing for December 19, 2025, to further examine the matter. 

Conclusion 

The Delhi High Court's inquiry into Union Bank's actions highlights the importance of due process in financial fraud cases. The court's decision to seek clarification on the issuance of a show cause notice underscores the need for transparency and adherence to legal protocols in such matters. 

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