Delhi HC overturns Union Bank's fraud label on Ambani-linked RHFL
The Delhi High Court has canceled Union Bank of India's move to call Reliance Home Finance Ltd (RHFL) "fraudulent."
The court said the bank skipped a crucial step: it didn't send a proper show-cause notice before making the fraud claim, which goes against Supreme Court rules.
Justice Jyoti Singh delivered this decision on Friday.
Why did this happen, and what's next?
Union Bank had accused RHFL—where Jai Anmol Ambani was a director—of causing a wrongful loss of about ₹228 crore to Union Bank (formerly Andhra Bank) in connection with credit facilities/loans.
But it turned out their fraud notice went to an old address that RHFL had left back in 2020.
Now, the court says Union Bank can try again but must send all documents to the right place so RHFL gets a fair chance to respond.
Meanwhile, the CBI is still investigating and recently searched Ambani's home as part of its probe into alleged cheating and misconduct.