Industrialist Anil Ambani has approached the Supreme Court challenging a Bombay High Court order that upheld the State Bank of India’s decision to classify his and Reliance Communications’ loan accounts as fraud. The petition has been filed but is yet to be listed for hearing.
The High Court, on October 3, dismissed Ambani’s challenge to the SBI order, holding that the plea lacked merit.
SBI had last year categorised the accounts as fraud, alleging misappropriation of funds through transactions said to be in violation of loan terms. According to the bank, the alleged diversion caused a loss of ₹2,929.05 crore.
Ambani argued before the High Court that SBI failed to comply with principles of natural justice. His petition said he was denied a proper hearing, and that key documents relied upon for the fraud classification were withheld for months and supplied only after six months.
Meanwhile, SBI lodged a complaint with the Central Bureau of Investigation earlier this year. Following this, the CBI carried out searches at premises linked to Reliance Communications and at Ambani’s residence. The agency said the complaint was based on the bank’s allegations of misappropriation resulting in the reported loss.
