Industrialist Anil Ambani has withdrawn his petition before the Bombay High Court challenging the ongoing fraud proceedings initiated by IDBI Bank in relation to a Rs750-crore loan granted to the now-insolvent Reliance Communications Ltd (RCom). His decision to withdraw the petition came after the Court refused to grant any interim protection, paving the way for Mr Ambani to appear before the Bank’s fraud committee later this week.
The petition, filed through advocates Ankit Lohia, Ameet Naik and Abhishek Kale, sought to restrain IDBI Bank from conducting a personal hearing scheduled for 30th October under the Reserve Bank of India’s master directions on fraud risk management. Mr Ambani argued that the Bank was proceeding without providing him access to all the documents and evidence it relied upon which, he said, would cause 'grave prejudice' to his right to a fair hearing.
Representing IDBI Bank, senior advocate Zarir Bharucha, assisted by Dhwani Gala and Rishi Thakur, opposed the plea, contending that Mr Ambani’s petition was not maintainable. Mr Bharucha told the Court that the Bank had already shared the forensic audit report (FAR), the core document forming the basis for initiating fraud proceedings, along with all annexures. He says Mr Ambani had been granted multiple opportunities for a personal hearing but had repeatedly sought adjournments.
After hearing both sides, a vacation bench of justice Sandesh D Patil declined to grant any ad-interim relief. Following the Court’s observation, Mr Ambani’s counsel informed the bench that the industrialist would withdraw his petition and appear before the Bank’s committee 'under protest'. The Court then disposed of the plea as withdrawn, granting Mr Ambani the liberty to raise all his contentions during the Bank’s hearing and to approach an appropriate forum later if the decision goes against him.
The dispute stems from a show-cause notice (SCN) issued by IDBI Bank to Mr Ambani under the RBI’s 2016 master directions on fraud classification and reporting by commercial banks and select financial institutions. The guidelines empower banks to label an account and its associated promoters or directors as 'fraud' if they find evidence of fund diversion, misappropriation, or misrepresentation based on forensic audits.
The Rs750-crore loan in question was extended to RCom which later defaulted on its debt obligations and entered insolvency proceedings. Following the forensic audit, IDBI Bank alleged certain irregularities and possible related-party transactions within the Reliance Anil Dhirubhai Ambani (r-ADA) group. Mr Ambani, who was then a director of RCom, received the SCN in May 2024, prompting a series of exchanges between him and the Bank.
Mr Ambani first responded to the notice in June 2024, after which IDBI Bank provided a copy of the forensic audit report in June 2025. According to Mr Ambani’s petition, the Bank’s report raised concerns over related-party transactions but did not provide all underlying documents. The industrialist subsequently sought 17 specific documents that he claimed were essential to defend himself meaningfully. IDBI Bank, however, maintained that the shared annexures were sufficient and denied access to further materials, leading Ambani to approach the High Court earlier this month.
Mr Ambani argued that without full disclosure, the personal hearing would be a 'procedural formality' rather than a fair opportunity to contest the charges. His counsel contended that conducting the hearing without transparency violated the principles of natural justice.
IDBI Bank, on the other hand, asserted that it had complied fully with the RBI’s directives and had given Mr Ambani multiple opportunities to be heard. The Bank maintained that the process was being conducted in line with regulatory requirements and that delaying the hearing further would impede the conclusion of long-pending fraud classification proceedings.
The Bombay High Court, while refraining from commenting on the merits of the case, accepted Mr Ambani’s decision to withdraw and noted that he could pursue appropriate remedies in the future depending on the Bank’s final decision. The personal hearing before IDBI Bank’s fraud examination committee is scheduled to proceed as planned on 30 October 2025.
Earlier this month, the HC dismissed the plea filed by the industrialist against State Bank of India (SBI)’s decision declaring his loan accounts as 'fraud'. In June 2025, SBI tagged the loan accounts of RCom and its promoter Mr Ambani as fraudulent, citing diversion of funds, breach of covenants and related-party transactions. The Bank subsequently informed RBI and initiated steps to approach central bureau of investigation (CBI). (
Read: Bombay High Court Dismisses Anil Ambani's Plea against SBI Move To Classify His Loan Account as Fraud)
Last month, the directorate of enforcement (ED) registered a money laundering case against the industrialist and RCom in connection with an alleged Rs2,929 crore fraud at SBI. The case, lodged under the Prevention of Money Laundering Act (PMLA), stems from a first information report (FIR) filed in August 2025 by CBI.
