The Bombay High Court on Friday refused to quash the order passed by the State Bank of India (SBI), which had classified the loan account of Reliance Communications and its chairman, Anil Ambani, as 'fraud'.
The classification was made on June 13, 2025, under the Reserve Bank of India’s Master Directions on Fraud Risk Management and SBI’s internal policies.
Ambani had challenged the move, arguing that the bank had not followed principles of natural justice. He claimed that he was not given an opportunity to be heard before the account was flagged as fraudulent. He also stated that some crucial material used in the classification was initially withheld and only provided to him after a delay of six months.
The High Court, however, upheld SBI’s decision, noting that the classification was in line with regulatory guidelines.
