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Informist, Monday, Jan. 12, 2026

 

NEW DELHI – The Delhi High Court Monday refused to stay proceedings on show cause notices issued by Union Bank of India to Reliance Home Finance Ltd. and its former non-executive director Anmol Ambani for declaring their accounts as fraud. The high court issued a notice to Union Bank of India on Ambani's plea, seeking quashing of the bank's show cause notices and asked him to reply to the bank within 10 days. 

 

After giving a personal hearing to Ambani, industrialist Anil Ambani's son, the bank will pass a "speaking order", said the high court. However, the effect of the bank's order will be subject to the order passed by the court, said Justice Jasmeet Singh, listing the case for hearing on Feb. 27.

 

The petitioner had argued that the resolution plan for Reliance Home Finance had already been approved and upheld by the Supreme Court and, hence, there cannot be any allegation of fraud against him and the company. The bank had the knowledge of the offence from 2020, however, it chose to issue a show cause notice after so many years, said the petitioner.

 

The case has its genesis from a term loan agreement executed between Union Bank of India and Reliance Home Finance, where the latter had taken a loan of INR 4.50 billion in 2015. The accounts of the company were classified as non-performing assets in 2019. Thereafter, the Central Bureau of Investigation had booked the company and others for allegedly cheating Union Bank of India and causing a loss of INR 2.28 billion. The probe agency's action came on a complaint from Andhra Bank, which has now merged with Union Bank, against Anmol Ambani and directors of Reliance Home Finance. 

 

Last month, the high court had quashed the declaration of Anmol Ambani and Reliance Home Finance's accounts as fraud as the Union Bank of India had failed to serve them a show cause notice on their current places before taking the action. Following the court's order, the bank served show cause notices to Anmol Ambani and Reliance Home Finance in their current addresses, against which the petitioner moved the high court.

 

At 1353 IST, shares of Union Bank of India traded 0.4% higher at INR 162.95 on the National Stock Exchange and those of Reliance Home Fin traded 1.5% lower at INR 2.67.   End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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