Anil Ambani gets relief as Canara Bank removes 'fraud' tag
What's the story
Canara Bank has withdrawn its order that had labeled the loan account of Reliance Communications, a company linked to industrialist Anil Ambani, as "fraudulent." The decision was revealed in the Bombay High Court on Thursday. The bench of Justices Revati Mohite Dere and Neela Gokhale disposed of Ambani's petition challenging this order after the bank's disclosure.
Fraud allegations
Loan routed to group company for settling other liabilities
On November 8, 2024, Canara Bank had labeled the loan account as "fraud," alleging that a ₹1,050 crore loan given in 2017 was "routed" to a group company for settling other liabilities. The decision was based on an RBI master circular on fraud accounts. In February this year, the HC stayed the order pending hearing of Ambani's plea.
Legal battle
Ambani challenges bank's order
Ambani challenged Canara Bank's order, claiming he wasn't given a hearing before his loan account was marked as fraudulent. He said the fraud tag was issued on November 8, 2024 but only communicated to him on December 25—after HC had already stayed a similar classification in another case. Ambani also alleged that Canara Bank had informed RBI about the fraud classification as early as September 6, 2024—before officially issuing the order.