Canara Bank Retracts ‘Fraud’ Tag on Anil Ambani’s ₹1,050 Cr Loan; Bombay HC Disposes Petition
Taking note of the withdrawal, the Court disposed of Ambani’s petition and directed the bank to formally communicate the decision to the Reserve Bank of India;
In a significant development, Canara Bank has withdrawn its November 2024 order classifying Reliance Communications’ ₹1,050 crore loan account linked to industrialist Anil Ambani as fraudulent.
The move came during a hearing before the Bombay High Court on Wednesday, where the bank informed a bench of Justices Revati Mohite-Dere and Neela Gokhale that it no longer wished to proceed with the fraud classification.
Taking note of the withdrawal, the Court disposed of Ambani’s petition and directed the bank to formally communicate the decision to the Reserve Bank of India.
Brief Background
The matter dates back to November last year, when Canara Bank, citing RBI’s master directions on fraud reporting, had alleged that funds had been diverted in 2017 from Reliance Communications to group entities for settling other liabilities. Ambani had challenged the classification, arguing that the order was passed without granting him a mandatory personal hearing, thereby violating principles of natural justice as well as Supreme Court guidelines.
He also pointed out that the order, though dated November 8, 2024, was communicated only on December 25, after the High Court had already stayed a similar unilateral classification.
The court had stayed Canara Bank’s order in February 2025, noting procedural irregularities.
While disposing of the plea, the bench clarified that nothing survived in the matter but granted Canara Bank liberty to revisit the classification process afresh, if done in accordance with law.