Banks push back on Anil Ambani's court win
Three banks are challenging a Bombay High Court order that gave Anil Ambani interim relief in a financial dispute.
The court had paused action on Ambani's accounts based on a 2020 forensic audit report cited by the banks as alleging fund misuse, but Ambani argued that the forensic audit report flouted the Reserve Bank of India's (RBI) new 2024 fraud guidelines.
Now, the banks want the decision reviewed, arguing that not staying the order could lead to "disastrous" consequences.
What both sides are arguing
The banks insist their audit followed RBI's older 2016 rules and argue Ambani never really disputed its findings.
Their legal team says applying the 2024 guidelines retroactively isn't fair.
Meanwhile, Ambani's lawyers claim the latest RBI rules should override previous ones and require stricter audits under company law.
The court will now decide which set of rules actually applies here.