Bombay High Court Halts Canara Bank's Fraudulent Tag on Ambani's Loan

The Bombay High Court stayed Canara Bank's order declaring Anil Ambani's loan account fraudulent. This account ties to Reliance Communications, which is under insolvency. Ambani argues he was not heard before the decision. The court seeks RBI's response and action plan for non-compliant banks.

The Bombay High Court has granted a stay on Canara Bank's order that labeled a loan account belonging to businessman Anil Ambani as fraudulent. The account in question is associated with Reliance Communications, currently embroiled in insolvency proceedings.

Justice Revati Mohite-Dere and Justice Neela Gokhale are presiding over a petition filed by Ambani. He challenges the November 8, 2024, decision by Canara Bank, arguing that the bank did not provide him with a fair hearing before declaring his account fraudulent.

The High Court has also requested the Reserve Bank of India's involvement, querying what measures it plans to adopt against banks disobeying the Supreme Court's directive of hearing borrowers before declaring accounts illegal. The next hearing is scheduled for March 6.