Three Banks Challenge Bombay High Court Relief Granted to Anil Ambani

New Delhi: Troubled industrialist Anil Ambani, once counted among India’s wealthiest businessmen, is facing renewed legal challenges despite receiving interim relief from the Bombay High Court last month. Three banks have filed an appeal against the order, intensifying scrutiny over his financial dealings.

Background of the Case
Last month, a single bench of the Bombay High Court restrained banks from taking action against Ambani’s accounts based on a 2020 Forensic Audit Report (FAR). The court had agreed that the FAR 2020 report violated the Reserve Bank of India’s (RBI) 2024 Master Direction on “Fraud Risk Management in Commercial Banks.” This interim relief prevented the banks from acting on the audit findings while the matter is under review.

Banks Seek Urgent Review
In the appeal, Solicitor General Tushar Mehta, representing one of the banks, argued before the division bench that failure to stay the High Court order could have “disastrous consequences.” Mehta contended that the conclusions recorded by Justice Milind Jadhav were not based on arguments presented in Ambani’s petitions or the interim relief application. The audit report, according to the banks, contains factual findings indicating that funds were “misused” and “misappropriated.”

Ambani’s Stand
Anil Ambani’s legal team maintains that he never challenged the FAR report on its merits. They argued that the audit was conducted by an external auditor under the 2016 RBI circular, which was duly followed. However, Ambani’s lawyers asserted that the 2024 RBI Master Direction supersedes the 2016 guidelines, and that any forensic audit must be conducted by an external auditor qualified under the Companies Act.

The legal battle underscores the ongoing tensions between regulatory compliance, audit procedures, and high-profile corporate accountability in India. Observers note that the division bench’s decision on the banks’ appeal could have significant implications for Ambani and the broader banking and corporate sectors.