Bombay High Court Allows Banks to Proceed with Fraud Classification Against Anil Ambani Firms

The Bombay High Court's division bench overturned a single-judge order that had stayed fraud classification proceedings by three public sector banks against Anil Ambani's companies, including Reliance Communications. The banks, citing a 2020 forensic audit alleging diversion of about Rs 31,580 crore, sought to classify the loan accounts as fraudulent. The court ruled the earlier stay was procedurally irregular and emphasized that RBI's Master Directions aim to protect public funds and enable timely fraud detection, allowing banks to proceed with investigations without undue judicial interference.