The Bombay High Court recently dismissed a significant petition filed by industrialist Anil Ambani. He had challenged the State Bank of India’s (SBI) decision to categorize his personal accounts and those of Reliance Communications as fraudulent.
A bench comprising Justices Revati Mohite Dere and Neela Gokhale concluded that Ambani’s plea lacked merit, and a detailed copy of the judgment is yet to be released.
The State Bank of India had previously labeled these accounts as fraudulent last year, citing allegations of fund misappropriation through transactions that violated the agreed terms of the loans it had extended.
Ambani’s legal team argued before the High Court that the bank had failed to adhere to the principles of natural justice by not granting him a proper hearing. His petition further contended that crucial documents, which formed the basis for the fraud classification, were withheld initially and only provided to him after a delay of six months.
Following these developments, the bank this year formally lodged a complaint with the Central Bureau of Investigation (CBI). Subsequently, the CBI conducted searches at premises linked to Reliance Communications and Ambani’s residence. The CBI’s investigation was prompted by SBI’s claim of a substantial loss amounting to ₹2,929.05 crore, allegedly due to the misappropriation of funds by Reliance Communications and Anil Ambani.