SC turns down Anil Ambani plea against 'fraud' tag

New Delhi: The Supreme Court on Thursday rejected industrialist Anil Ambani's appeal challenging a move by a consortium of banks to classify his loan accounts as "fraudulent".

A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi said they did not find any "ground to interfere" with a Bombay High Court division bench's February 23 order, which allowed Bank of Baroda, Indian Overseas Bank and IDBI Bank to proceed with the classification.

However, it clarified that the HC division bench's order should not come in the way of the single judge deciding the case. The apex court asked the HC to expedite the hearing on Anil Ambani's petition.


The single-judge bench had stayed the banks' move, citing non-compliance with central bank guidelines. The division bench, however, overturned that decision, clearing the way for the banks to take action.

Appearing for Anil Ambani, senior counsel Kapil Sibal said he would like to settle the matter with the banks. Solicitor general Tushar Mehta, representing the banks, opposed the plea, saying "it will have other ramifications" and that the recording of the statement will be used in other proceedings, including criminal investigation.

"If the petitioner (Anil Ambani) has any other remedy in law, he shall be at liberty to avail the same. On the petitioner's submission that he wishes to settle with the banks, we do not express any opinion," the top court said, adding that "it is between you (Anil Ambani) and the banks."

Sibal told the bench that Anil Ambani had already written to banks for settlement of dues.

Seeking to stay the classification of his loan accounts as "fraudulent" by the three lenders under the Reserve Bank of India's 2024 Master Directions, Anil Ambani, told the SC that the banks acted on an "illegal report" by forensic auditor BDO India.