The Delhi High Court on Monday declined to stay a show cause notice issued by Union Bank of India to Jai Anmol Ambani, director of Reliance Home Finance Ltd (RHFL) and son of industrialist Anil Ambani, in connection with proceedings to declare the company’s bank account as fraudulent.
Justice Jasmeet Singh, while hearing Ambani’s plea, stated that he would not interdict the show cause notice and directed Ambani to respond to the bank within 10 days. The court clarified that the consequences of any action taken by the bank pursuant to Ambani’s response would remain subject to the outcome of the present writ petition.
“I will not interdict a show cause notice. You argue in show cause… Let’s see what the order is,” Justice Singh remarked during the hearing.
The court also directed Union Bank of India to pass a “speaking order”—a reasoned decision—after granting a personal hearing to the petitioner or his authorised representative on January 30. This order is to be submitted to the court on the next date of hearing, February 27, 2026.
Senior counsel appearing for Jai Anmol Ambani submitted that the December 22, 2025, show cause notice was “inherently flawed” and untenable in law. He argued that:
- A resolution plan for RHFL had already been approved by all lender banks and was affirmed by the Supreme Court;
- The allegation of fraud was therefore not maintainable;
- The bank had access to all relevant information since 2020, and issuing a show cause notice after nearly five years was ex facie illegal and contrary to settled law.
The bank’s counsel opposed the petition, arguing that courts have limited jurisdiction at the stage of issuance of a show cause notice. Justice Singh, however, questioned the timing and legality of issuing such a notice post-approval of an insolvency resolution plan, and emphasised that the petitioner’s objections should be fully considered by the bank.
The fresh notice under challenge was issued after the High Court had earlier set aside a previous notice on procedural grounds. In an order dated December 19, 2025, the court quashed the earlier notice on the ground that it was sent to an outdated address vacated by the company in 2020, thereby violating the principles of natural justice.
However, the High Court had permitted the bank to issue a fresh notice in accordance with law.
The case is rooted in a CBI FIR registered against Jai Anmol Ambani, RHFL, and company director Ravindra Sharad Sudhakar for alleged cheating involving a ₹228 crore loss to Union Bank of India (erstwhile Andhra Bank).
As per the complaint, RHFL had availed credit limits of up to ₹450 crore from the bank’s SCF Branch in Mumbai for business operations but defaulted on repayments. The loan account was classified as a non-performing asset (NPA) on September 30, 2019.
