Bombay HC refuses to quash SBI’s “Fraud” label on Anil Ambani’s loan account

October 3, 2025

Bombay: The Bombay High Court on Friday refused to set aside 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 “fraudulent”.

A division bench of Justice Revati Mohite-Dere and Dr Neela Gokhale pronounced the order.

It is worth mentioning that the decision to classify the account of Ambani and his company as “fraudulent” was taken on June 13, 2025, under the Reserve Bank of India’s Master Instructions on Fraud Risk Management and SBI’s Internal Policy.

Ambani had therefore challenged the action in the High Court and said that the bank did not follow the principles of natural justice as it did not give him a hearing before classifying the industrialist’s account as fraudulent. He further stated that some of the materials, on the basis of which the classification orders were passed, were not initially provided to him and were later provided to him only after a lapse of six months.