Bombay High Court Stays Bank Action Against Anil Ambani in Fraud Classification Case

The Bombay High Court stayed coercive steps by Bank of Baroda, IDBI Bank, and Indian Overseas Bank against Anil Ambani in fraud-classification proceedings.

The case arose after consortium banks commissioned a forensic audit in 2019 into Reliance Communications and group entities for the 2013–2017 period.

The Court held that the 2020 audit report by BDO LLP could not be relied upon since it was not signed by a chartered accountant with a valid certificate of practice. It observed that the RBI’s 2024 Master Directions on Fraud require external forensic auditors to hold statutory qualifications. 

Pending further consideration, the Court restrained banks from proceeding with show-cause notices or taking further fraud-related action.

[Anil Ambani v. Indian Overseas Bank & Ors.]