Anil Ambani moves SC against SBI classification of his account as fraud

Industrialist Anil Ambani has moved the Supreme Court challenging an order of the Bombay High Court, which upheld the State Bank of India’s (SBI) decision classifying his and Reliance Communications’ accounts as fraud. The matter is yet to be listed for hearing. The High Court had on October 3 dismissed Ambani’s plea challenging the SBI decision and said there was no merit in the plea. The SBI had last year classified the accounts as fraud, alleging misappropriation of funds by entering into transactions that violated the terms of loans extended by it.

Ambani moved the HC, arguing that the bank had not followed the principles of natural justice as it did not grant him a hearing. Certain documents, based on which the classification orders were passed, were not provided to him initially and were furnished only after six months, the petition claimed. The CBI had registered a complaint after the State Bank of India claimed a loss of Rs 2,929.05 crore resulting from alleged misappropriation by Reliance Communications and Anil Ambani.