Bombay HC lifts stay on proceedings against Anil Ambani, RCom
What's the story
The Bombay High Court has lifted a stay on proceedings against industrialist Anil Ambani and Reliance Communications Ltd, to classify their bank accounts as fraud. The decision was made by a division bench comprising Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad. The bench quashed an interim order passed by a single bench of the HC in December 2025, which had granted relief to Ambani and his company.
Appeal
Banks challenge single bench order
The decision came after three public sector banks and auditor firm BDO India LLP appealed against the December 2025 interim order. The division bench called the single bench order "illegal and perverse." Ambani's lawyers had requested the HC to stay its ruling so they could approach the Supreme Court, but their plea was rejected.
Audit controversy
Forensic audit findings serious, banks argue
The banks contended that the forensic audit, which resulted in accounts being labeled as "fraud," was legally valid and based on serious findings of fund siphoning and misutilization. They argued this was recorded in a report submitted by BDO LLP. The banks also noted that Ambani had raised a technical challenge to the forensic audit before the single bench.
Notice dispute
Ambani had challenged show-cause notices
Ambani had challenged before the single bench, show-cause notices issued by Indian Overseas Bank, IDBI and Bank of Baroda. These sought to declare his and Reliance Communications's accounts as fraud accounts. As interim relief, he requested a stay on the notices and an injunction against any coercive action on grounds that BDO LLP was not qualified to conduct the forensic audit, as its signatory was not a chartered accountant.