India Supreme Court Upholds Fraud Tag on Ambani Loans

New Delhi, India – The Supreme Court of India on Thursday dismissed three separate pleas filed by industrialist Anil Ambani, upholding a Bombay High Court order that permits public sector banks to continue proceedings classifying his personal loan accounts and those of Reliance Communications Ltd. as fraudulent. The decision, delivered by a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi, clears the way for the banks to advance their case amid allegations of fund siphoning worth thousands of crores of rupees.

The dispute centers on show-cause notices issued by Indian Overseas Bank, IDBI Bank, and Bank of Baroda, which sought to declare the accounts fraudulent following a forensic audit conducted by BDO India LLP. The audit reportedly uncovered serious irregularities, including misutilization and diversion of funds extended as loans to Ambani and his telecommunications company. Ambani had contested the notices, arguing that the audit was legally invalid because BDO was not qualified to perform it under Reserve Bank of India guidelines and that its lead signatory was not a chartered accountant.

The case reached the Supreme Court after a...