The Supreme Court on Thursday dismissed petitions filed by Anil Ambani challenging a Bombay High Court order that allowed banks to continue proceedings to classify certain loan accounts as fraudulent, reported the PTI.
A bench led by Chief Justice Surya Kant, along with Justices Joymalya Bagchi and Vipul M Pancholi, permitted Ambani to pursue his case before a single judge bench of the High Court.
The top court also requested the High Court to hear and decide the matter expeditiously.
“In terms of the Single Bench order, the Division Bench order shall not touch upon the merits of the suit, which remains pending. We request that the Bombay High Court expedite the civil suit for disposal. If the petitioner (Anil Ambani) has any other remedy in law, he shall be at liberty to avail the same. On the petitioner`s submission that he wishes to settle with the banks, we do not express any opinion”, the Court noted, reported the ANI.
The case
According to the PTI, the case relates to proceedings initiated by banks against Anil Ambani and Reliance Communications to classify their loan accounts as fraud.
Anil Ambani had approached the Supreme Court challenging a February 23 order of a division bench of the Bombay High Court.
Earlier, on April 6, the Supreme Court directed central investigative agencies to conduct a time-bound, fair and transparent probe into alleged financial irregularities linked to the Reliance Anil Ambani Group (RAAG), while hearing a public interest litigation filed by EAS Sarma on March 23, as per the ANI.
Bombay High Court order
The division bench had earlier set aside an interim order by a single judge bench, which had stayed action by banks against Anil Ambani and his company.
The division bench ruled in favour of appeals filed by three public sector banks—Indian Overseas Bank, IDBI Bank and Bank of Baroda—along with audit firm BDO India LLP, according to the PTI.
Dispute over fraud classification
The earlier interim relief had been granted on the grounds that the banks’ action was based on an allegedly flawed forensic audit and did not follow mandatory guidelines of the Reserve Bank of India (RBI), as per the PTI.
Anil Ambani had challenged show-cause notices issued by the banks seeking to classify the accounts as fraudulent.
(with PTI and ANI inputs)