HC Lifts Stay on Proceedings to Label Anil Ambani’s Bank Accounts as Fraudulent
Bombay High Court dismisses single bench order shielding Anil Ambani and Reliance Communications from action by public sector banks.
Bombay, Feb 23 : The Bombay High Court on Monday overturned a single-bench interim order that had stayed proceedings against industrialist Anil Ambani and Reliance Communications Ltd, allowing banks to classify their accounts as fraudulent.
A division bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad ruled in favour of appeals filed by Indian Overseas Bank, IDBI Bank, Bank of Baroda, and auditor BDO India LLP, terming the earlier single-bench stay “illegal and perverse.”
Ambani’s legal team requested a stay on the division bench’s decision to approach the Supreme Court, but the bench declined the plea.
The matter stems from December 2025, when a single bench had granted interim relief to Ambani, halting all present and future action by the banks. The order had questioned the forensic audit conducted by BDO LLP and cited alleged violations of Reserve Bank of India (RBI) rules. Ambani had argued that BDO LLP was not a qualified audit firm, claiming the signatory was not a chartered accountant.
The banks countered that the forensic audit was legally valid and highlighted significant fund misutilisation and siphoning, supporting the classification of the accounts as fraudulent. They contended that Ambani’s technical objections to the audit did not invalidate the serious findings.
By quashing the single-bench order, the division bench has allowed banks to resume action against Ambani and Reliance Communications, marking a setback for the industrialist in the ongoing financial scrutiny of his accounts.
