Bombay High Court Holds Anil Ambani Liable for RCOM Loan Classified as Fraud

The Bombay High Court held industrialist Anil Ambani liable for the classification of Reliance Communications Limited’s (RCOM) loan account as fraudulent, in his capacity as promoter and person in control of the company.

A Division Bench noted that when a bank declares a company’s loan account as fraudulent, the promoter or directors are accountable, rejecting Ambani’s claims of procedural unfairness.

The matter arose from a 2023 show-cause notice issued to RCOM and its directors after SBI classified the loan as fraudulent following defaults and a forensic audit, which Ambani challenged, citing a lack of access under new RBI rules.

[Anil Ambani v State Bank of India]