Post by : Shakul

In a setback to industrialist Anil Ambani, the Bombay High Court on February 23, 2026, quashed an interim order by a single Bench that stayed proceedings against him and Reliance Communications Ltd to classify their bank accounts as fraudulent.

The decision came from a division Bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad, which allowed appeals filed by three public sector banks — Indian Overseas Bank, IDBI Bank, and Bank of Baroda — along with the auditor firm BDO India LLP against the December 2025 single Bench order. The Bench described the previous order as “illegal and perverse.”

Anil Ambani had challenged show-cause notices issued by the three banks seeking to declare his and Reliance Communications’ accounts as fraud accounts. He argued that the forensic audit, conducted by BDO LLP, was legally flawed as the signatory was not a chartered accountant and claimed BDO LLP was an accounting consultant, not an audit firm. The single Bench had initially stayed all actions based on this argument.

The banks countered that the forensic audit was legally valid and documented serious findings of fund siphoning and misutilization. They stated that Ambani had raised only a technical objection, and the interim relief granted by the single Bench was “perverse.” The division Bench rejected Ambani’s request for a stay on its order to approach the Supreme Court.

The quashing of the interim stay clears the way for the banks to continue proceedings against Anil Ambani and Reliance Communications regarding the classification of their accounts as fraudulent. Authorities and legal experts expect further scrutiny as the matter progresses, given the high-profile nature of the case.

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