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SC rejects pleas of Anil Ambani challenging Bombay HC (Img: Internet)
New Delhi: The Supreme Court of India on Thursday declined to entertain a plea by industrialist Anil Ambani challenging the classification of loan accounts linked to Reliance Communications as “fraud,” directing him to seek relief before a civil court where related proceedings are already pending.
A bench led by Chief Justice Surya Kant, along with Justices Joymalya Bagchi and Vipul M Pancholi, observed that the case involved serious allegations of siphoning and diversion of large sums of public money.
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The court said it was not inclined to intervene at this stage, noting that the core dispute was yet to be adjudicated. It also pointed to allegations involving shell entities and fund diversion, while refraining from making detailed observations.
Senior advocate Kapil Sibal, appearing for Ambani, argued that the forensic audit forming the basis of the fraud classification was flawed, claiming it was not conducted by a qualified chartered accountant.
The bench, however, held that such technical objections could not be examined in isolation, especially when substantive issues were already before a civil court. It stated that Ambani was free to raise all such grounds in the pending suit.
The court also declined a request for a fresh forensic audit, emphasizing that banks are best placed to decide the process of auditing. It noted that courts should not substitute their judgment for that of financial institutions unless clear evidence of procedural unfairness is established.
The bench further observed that the Bombay High Court had already examined the matter on merits and recorded findings on fund diversion, while acknowledging compliance with regulatory norms.
During the hearing, Ambani expressed willingness to explore a settlement with lenders. The court recorded the submission but clarified that it had not expressed any opinion on the proposal.
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The incident stems from a 2020 forensic audit that flagged alleged irregularities worth around ₹31,580 crore across entities of the Anil Dhirubhai Ambani Group. Following this, multiple banks classified the accounts as “fraud” in 2025.
Investigations by agencies including the Central Bureau of Investigation and the Enforcement Directorate are ongoing, with allegations of loan diversion through shell entities and fictitious transactions.
While dismissing the petitions, the Supreme Court clarified that observations made by the Bombay High Court would not prejudice the civil proceedings. It also urged speedy disposal of the pending suit, allowing Ambani to pursue all legal remedies before the trial court.
