The Bombay High Court dismissed a plea filed by Reliance Communications and its chairman Anil Ambani, seeking to set aside the State Bank of India’s (SBI) decision categorising their loan account as “fraud.”
A Division Bench comprising Justice Revati Mohite-Dere and Justice Dr. Neela Gokhale upheld SBI’s action, which was taken on June 13, 2025, pursuant to the Reserve Bank of India’s Master Directions on Fraud Risk Management and the bank’s internal policy framework.
Ambani had approached the High Court contending that the classification order was issued in violation of the principles of natural justice. It was argued that SBI failed to grant him a fair hearing before branding the account as “fraud” and that certain key documents relied upon by the bank were initially withheld, only being shared with him nearly six months later.
Rejecting these arguments, the Court refused to quash the bank’s decision, thereby affirming the validity of the classification and reinforcing the scope of regulatory powers available to financial institutions under RBI’s fraud management guidelines.
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