The Bombay High Court recently delivered a significant ruling, dismissing a petition filed by prominent industrialist Anil Ambani. The petition challenged the State Bank of India’s (SBI) decision to classify his and Reliance Communications’ accounts as fraudulent.
A division bench, comprising Justices Revati Mohite Dere and Neela Gokhale, concluded that Mr. Ambani’s plea lacked merit. A comprehensive copy of the judgment was not immediately released following the pronouncement.
Last year, the SBI had designated these accounts as fraudulent. The bank’s accusation stemmed from alleged misappropriation of funds, asserting that transactions were carried out in violation of the terms governing the loans it had extended.
Mr. Ambani had approached the High Court, contending that the bank failed to adhere to the principles of natural justice by not granting him a proper hearing. He further argued that crucial documents, which formed the basis of the fraud classification orders, were withheld from him initially and were only provided after a delay of six months.
In response to these developments, the SBI this year filed a formal complaint with the Central Bureau of Investigation (CBI). Subsequently, the CBI conducted searches at premises associated with Reliance Communications and Mr. Ambani’s residence. The investigative agency confirmed that its complaint was initiated after the State Bank of India reported a substantial loss of ₹2,929.05 crore, allegedly resulting from fraudulent activities and fund misappropriation by Reliance Communications and Anil Ambani.