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Canara Bank Withdraws 'Fraud' Label on Anil Ambani-Linked Loan Account, Bombay High Court Disposes of Petition
ByAinvest
Thursday, Jul 10, 2025 6:05 am ET1min read
Canara Bank has withdrawn its "fraudulent" label on a loan account linked to Anil Ambani's Reliance Communications, citing RBI guidelines. The bank had previously classified the account as fraudulent due to alleged diversion of funds. The decision comes after SBI also flagged the loan account as fraudulent. The Bombay High Court has disposed of Ambani's petition challenging the fraud tag.
Canara Bank has withdrawn its classification of a loan account linked to industrialist Anil Ambani's Reliance Communications as "fraudulent," following a decision by the Bombay High Court. The bank had initially classified the account as fraudulent due to alleged diversion of funds, but it has now reversed this classification [1].The decision comes after the State Bank of India (SBI) also flagged the loan account as fraudulent, citing similar irregularities. Both banks have reported their findings to the Reserve Bank of India (RBI) in accordance with central bank guidelines [2].
Anil Ambani had challenged the fraud tag in court, arguing that he was not given a hearing before the loan account was classified as fraudulent. The Bombay High Court disposed of his petition, stating that "nothing survives" in the matter following Canara Bank's withdrawal of the order [1].
The case relates to a loan account linked with Reliance Communications, which is undergoing insolvency proceedings. Canara Bank had classified the account as fraudulent on November 8, 2024, citing the diversion of ₹1,050 crore loan funds to a group company to settle liabilities owed to related parties [1].
The withdrawal of the fraudulent classification by Canara Bank is a significant development in the ongoing legal battle between the businessman and the bank. It follows SBI's similar classification of the loan account as fraudulent due to observed irregularities [2].
References:
[1] https://timesofindia.indiatimes.com/business/india-business/order-classifying-anil-ambanis-loan-account-as-fraudulent-withdrawn-canara-bank-to-hc/articleshow/122362330.cms
[2] https://m.thewire.in/banking/sbi-classifies-reliance-communications-loan-account-as-fraud-anil-ambani-to-be-reported-to-rbi
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