Loan Fraud
HC junks Anil Ambani's plea against classifying his, RComm loans as fraud
This story was originally published at 19:16 IST on 3 October 2025
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NEW DELHI – The Bombay High Court on Friday dismissed a plea against State Bank of India's decision to classify Reliance Communications Ltd. and its founder, Anil Ambani's, loan accounts as fraud. The court rejected Anil Ambani's argument that he was not given an adequate opportunity to present his defence for classifying the loan accounts as fraudulent. The court said that the State Bank of India had adhered to the Reserve Bank of India's Master Directions on Fraud Risk Management.
In June, the bank had classified the loan account of Ambani and Reliance Communications as fraud for deviation of funds in a 2016 case. SBI alleged Ambani had misappropriated bank funds by entering into transactions that violated the terms of the loans. Thereafter, the Central Bureau of Investigation lodged a case against Ambani for alleged bank fraud that caused a loss of over INR 29.29 billion to SBI. Other banks have also passed similar orders against Ambani and Reliance Communications.
In court, Ambani argued that the SBI had not followed the principles of natural justice, as it had not granted him an audience before classifying the accounts as fraudulent. Ambani said that the bank's decision was taken without following due process and was arbitrary in nature. Ambani stated that he was only a non-executive director of the company and had been selectively targeted.
On Friday, shares of Reliance Communications ended 4.3% higher at INR 1.45 on the National Stock Exchange, while shares of State Bank of India ended 0.4% higher at INR 867.30. End
Reported by Surya Tripathi
Edited by Saji George Titus
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