
Setback To Anil Ambani: Bombay HC Upholds SBI Move To Classify Loan Account As 'Fraud'
A bench of Justices Revati Mohite Dere and Neela Gokhale dismissed Anil Ambani's argument of procedural unfairness and upheld the State Bank of India's action.
The court did not find any force in the industrialist's allegation of arbitrariness in the bank's decision and noted that SBI had followed the RBI's July 2024 Master Directions on fraud classification.
The bank tagged the loan accounts of Reliance Communications (RCom) and its promoter, Anil Ambani, as fraudulent in June 2025.
The bank cited diversion of funds, breach of covenants and related-party transactions as the reasons behind its decision, approaching the Central Bureau of Investigation (CBI) for action.
Anil Ambani had challenged the decision on the grounds that he was only a non-executive director and had been selectively singled out. He also argued that adequate opportunity to present his defence was not provided by the bank.
Earlier this month, Bank of Baroda, in an exchange filing, declared that the loan accounts of Reliance Communications Ltd (RCom) and its erstwhile director Anil Ambani had been categorised as“fraud”.
This classification pertained to loans taken before RCom entered the corporate insolvency resolution process (CIRP), the exchange filing said.
This development marked a crucial turn in the ongoing financial saga surrounding the once-prominent telecom company and its erstwhile director.
Rcom, which underwent the CIRP under the Insolvency and Bankruptcy Code (IBC), 2016, said that the loans in question are related to the period before its insolvency proceedings began. The company asserted that these loans must be resolved as part of a resolution plan or through liquidation under the IBC.
RCom is presently under the control of a resolution professional, Anish Niranjan Nanavaty. Anil Ambani is no longer a director of the company.

Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Most popular stories
Market Research

- New Cryptocurrency Mutuum Finance (MUTM) Raises $15.8M As Phase 6 Reaches 40%
- Noveba Brings Apple Pay To Customers
- Mutuum Finance (MUTM) Approaches Next Phase With 14.3% Price Increase After Raising $16 Million
- Cregis And Kucoin Host Institutional Web3 Forum Discussing Industry Trends And Opportunities
- Primexbt Expands Crypto Futures With 101 New Coins, Delivering Best-In-Class Trading Conditions
- BTCC Exchange Announces Triple Global Workforce Expansion At TOKEN2049 Singapore To Power Web3 Evolution
Comments
No comment