Mumbai, Feb 23 (PTI) In a setback to industrialist Anil Ambanithe Bombay Excessive Court docket on Monday quashed a single bench interim order that stayed proceedings initiated towards him and Reliance Communications Ltd to categorise their financial institution accounts as fraud.
A division bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad allowed the appeals filed by three public sector banks and auditor agency BDO India LLP towards the December 2025 interim order handed by a single bench of the HC.
The division bench, whereas quashing the only bench order, termed it “unlawful and perverse”.
Ambani’s counsels sought the HC to remain its order in order that they might strategy the Supreme Court docket, however the request was declined.
The banks final month challenged a December 2025 single-bench order granting interim aid to Ambani and his firm. The order had cited violations of obligatory RBI guidelines and a traditional case of banks “waking up from deep slumber” after years.
The one bench order stayed all current and future motion by Indian Abroad Financial institution, IDBI Financial institution and Financial institution of Barodanoting that the motion was primarily based on a legally flawed forensic audit and violated the Reserve Financial institution of India’s (RBI) obligatory pointers.
The three banks of their enchantment mentioned the forensic audit, which led to accounts being categorised as “fraud“, was legally legitimate and primarily based on critical findings of fund siphoning and misutilisation.
This was recorded within the report submitted by the audit agency BDO LLP, they contended.
The banks, of their plea, additionally mentioned Ambani had raised a technical problem to the forensic audit earlier than the only bench.
They sought the division bench to quash the only bench’s interim order, claiming it was “perverse”.
Ambani had challenged earlier than the only bench show-cause notices issued by the Indian Abroad Financial institution, IDBI and Financial institution of Baroda, in search of to declare his and Reliance Communications‘ accounts as fraud accounts.
As an interim aid, he sought a keep of the notices and an injunction towards any coercive motion on the bottom that BDO LLP was not certified to conduct the forensic audit as its signatory was not a chartered accountant.
BDO LLP was an accounting guide agency and never an audit agency, Ambani claimed.
The one bench had agreed with Ambani and stayed the motion by the banks.
Disclaimer: This story has been printed from a wire company feed with out modifications to the textual content.