Bombay High Court Dismisses Anil Ambani's Plea Against Classification Of His Account As Fraud By SBI

The Bombay High Court has dismissed a Petition filed by industrialist Anil Ambani who challenged classification of his and Reliance Communications' accounts as fraud by the State Bank of India's (SBI).

A Division Bench comprising Justice Revati Mohite Dere and Justice Neela Gokhale observed that there was no merit in the plea.

The SBI had last year classified the said accounts as fraud, alleging misappropriation of funds by entering into transactions that violated the terms of loans extended by it. Anil Ambani had approached the High Court on the ground that the SBI had not followed the principles of natural justice and did not grant him a hearing.

As per his plea, certain documents, based on which the classification orders were passed, were not provided to him initially, and furnished only after six months.

The SBI lodged a complaint with the Central Bureau of Investigation (CBI). The CBI then searched the premises linked to the Reliance Communications and Ambani's residence.

The CBI said it had registered a complaint after the SBI claimed a loss of Rs. 2,929.05 crore resulting from alleged misappropriation by Reliance Communications and Anil Ambani.

A detailed copy of the High Court's Judgment is awaited.

With PTI Inputs