Bombay HC dismisses Anil Ambani’s plea against SBI classifying his loan account as fraud

The Bombay Excessive Courtroom on Friday dismissed a plea by businessman Anil Ambani difficult the State Financial institution of India’s classification of his mortgage account and that of Reliance Communications (RCom) as “fraud,” in accordance with Dwell Legislation.

A division bench of Justices Revati Mohite-Dere and Dr Neela Gokhale pronounced the order.

The classification had been made on June 13, 2025, in accordance with the Reserve Financial institution of India’s Grasp Instructions on Fraud Danger Administration and SBI’s inner coverage. Ambani had approached the courtroom contending that the financial institution didn’t observe rules of pure justice, as he was not given a possibility to be heard earlier than his account was tagged as fraud.

He additionally famous that sure materials relied upon for the classification was not initially shared with him and was solely supplied after a six-month delay.

SBI’s classification of RCom and its promoter comes amid a major credit score publicity. The financial institution’s fund-based principal excellent to RCom stands at Rs 2,227.64 crore, together with accrued curiosity and bills from August 26, 2016, along with a non-fund-based financial institution assure of Rs 786.52 crore.

RCom is at present present process Corporate Insolvency Resolution Process (CIRP) below the Insolvency and Chapter Code, 2016, with a decision plan authorised by the Committee of Collectors and filed with the Nationwide Firm Legislation Tribunal (NCLT), Mumbai, on March 6, 2020, awaiting NCLT approval.This isn’t the primary time SBI has labeled the account as fraud. The financial institution had beforehand completed so in November 2020 and lodged a grievance with the CBI in January 2021, which was returned following a Delhi Excessive Courtroom ‘establishment’ order dated January 6, 2021. After the Supreme Courtroom’s judgment in SBI vs Rajesh Agarwal on March 27, 2023, which required lenders to supply debtors a possibility to characterize themselves, the classification was reversed in September 2023. Following a re-run of the method below the RBI round dated July 15, 2024, the account was reclassified as fraud in June 2025.

Along with the RCom case, the non-public insolvency decision course of in opposition to Anil Ambani can be ongoing earlier than the NCLT, Mumbai.

SBI has additionally lodged a grievance with the CBI in keeping with the fraud classification.