Anil Ambani: Big blow to Anil Ambani from Supreme Court, clearly refused to give relief in loan fraud case.

Supreme Court In Anil Ambani Case: The Supreme Court has given a big blow to the country’s veteran industrialist Anil Ambani on Thursday. The court refused to interfere with the Bombay High Court order canceling the interim protection granted to him against classification of his loan accounts as fraud. A bench of CJI Surya Kant and Justices Joymalya Bagchi and Vipul Pancholi dismissed their petitions, which challenged the Bombay High Court decision.

However, the Supreme Court clarified that the observations made by the Bombay High Court will have no impact on the final decision of the civil suits filed by Ambani challenging the fraud classification proceedings. The court also directed for early hearing of the pending cases, provided the parties cooperate, while keeping all other remedies available under law open to Ambani.

Anil Ambani’s lawyer’s argument

During the hearing, senior advocate Kapil Sibal, appearing for Ambani, argued that classification of fraud would materially amount to civil death and said that such interim protection could not have been quashed by the division bench. Sibal said that he has been called a fraud. It’s actually civil death, no one will lend me money. However, a bench headed by the Chief Justice did not agree to grant the relief as serious allegations related to misappropriation of public money were under investigation.

Sibal argued that the forensic audit has been relied upon by the banks, but the same was not legally valid as it was not conducted by a qualified auditor under the applicable statutory framework and RBI’s Master Directions 2024. Raising the question whether the Supreme Court could change the approach of lenders, the bench remarked that nationalized banks have taken over the services. They know the best person, can we replace their intelligence? It’s their money.

What did the Solicitor General say?

Solicitor General Tushar Mehta said the forensic report was prepared through a transparent process by a reputed professional body appointed by the lenders’ association. The dispute arises out of the reliance by the lender banks on the forensic audit report prepared by BDO India LLP on October 15, 2020, in respect of loans given to Reliance Communications and related entities.

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Bombay HC had banned

in december 2025 Bombay High Court had stayed further action by banks on the forensic report and related show cause notices, holding prima facie that the forensic audit was not in line with the RBI’s master instructions and fraud classification could have serious civil consequences. However, the division bench later removed the interim protection, holding that the single judge had erred in reading the 2024 RBI Master Instructions retrospectively and questioning the validity of the 2020 forensic audit on that basis.