SC declines relief to Anil Ambani, Reliance Communications in loan 'fraud' row

NEW DELHI: The Supreme Court on Thursday refused to interfere with the Bombay High Court's order vacating the interim protection granted to industrialist Anil Ambani against the classification of his loan accounts as "fraudulent" by lender banks under the Reserve Bank of India’s 2024 Master Directions.

A Bench of Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and Vipul Pancholi dismissed Ambani’s petitions challenging the Bombay High Court's division bench judgment, which had set aside the interim stay granted by a single judge in his favour.

However, the apex court clarified that the observations made by the Bombay High Court would have no bearing on the final adjudication of Ambani’s civil suits challenging the fraud classification proceedings.

It also directed expeditious trial of the pending suits, subject to cooperation by the parties, while leaving all other remedies available in law open to Ambani.

During the hearing, senior advocate Kapil Sibal, appearing for Ambani, argued that fraud classification would amount to a "virtual civil death" and submitted that such interim protection could not have been vacated in the manner done by the Division Bench.