Bombay HC stays Canara Bank order declaring Anil Ambani's loan account as fraudulent

Mumbai: The Bombay High Court on Friday stayed a Canara Bank order that classified businessman Anil Ambani’s loan account as fraudulent.

The account was related to Ambani’s company Reliance Communications, which is undergoing insolvency proceedings.

A bench of Justices Revati Mohite-Dere and Neela Gokhale was hearing a petition filed by Ambani against the bank’s order of November 8, 2024.

Ambani challenged the order saying Canara Bank did not hear him before declaring his loan account as fraudulent.

The HC also sought the response of Reserve Bank of India on the matter.

The bench asked RBI what action it intends to take against banks for not following the Supreme Court’s directive of hearing borrowers before declaring accounts as illegal.

RBI needs to take some action against banks as this is repeatedly happening, the bench said.

The HC posted the matter for further hearing on March 6.