Supreme Court Upholds Fraud Proceedings Against Anil Ambani

The Supreme Court dismissed Anil Ambani's appeals against the Bombay High Court's decision allowing banks to classify his and Reliance Communications' accounts as fraud. Ambani can contest the show-cause notices before a high court single judge bench, following proceedings involving three public sector banks and BDO India.

The Supreme Court on Thursday delivered a significant blow to industrialist Anil Ambani by dismissing his petitions challenging the Bombay High Court's ruling. The high court had previously allowed banks to continue proceedings that classify Ambani's and Reliance Communications Ltd's bank accounts as fraudulent.

Ambani retains the option to contest the show-cause notices before a single-judge bench of the high court. The Supreme Court bench led by Chief Justice Surya Kant advised swift resolution by the high court on this matter.

This ruling follows a legal battle involving a division bench's decision, which overturned a previous interim order that had stayed the banks' actions. Three public sector banks and auditor firm BDO India LLP had appealed against the stay, citing guidelines from the Reserve Bank of India.

(With inputs from agencies.)