High Court Upholds SBI Fraud Classification Against Anil Ambani

The Bombay High Court has affirmed an order from the State Bank of India (SBI), classifying the bank accounts of industrialist Anil Ambani and his Reliance Communications as fraudulent. The court found that the SBI's decision, based on RBI's Master Directions, was well-reasoned and lacking any legal faults.

Rejecting Ambani's petition, the court noted that there was no merit in his claims that he was unfairly denied a personal hearing. The court emphasized that the right under the Reserve Bank of India's framework allows for representation but does not mandate a personal hearing for the accused.

SBI had accused Reliance Communications of misappropriation, leading to a significant financial loss. This led the bank to notify the Central Bureau of Investigation and classify the accounts as fraudulent, fulfilling procedural justice requirements according to existing guidelines.

(With inputs from agencies.)