Anil Ambani Moves Supreme Court Against SBI’s ‘Fraud’ Account Tag
Industrialist Anil Ambani has approached the Supreme Court, challenging a Bombay High Court verdict that upheld the State Bank of India’s decision to classify his and Reliance Communications’ accounts as fraudulent.
Key Takeaways
- The Bombay High Court dismissed Ambani’s petition on October 3, 2025, calling SBI’s order “reasoned” and without “infirmity”.
- The court ruled that RBI rules guarantee a right to representation, not a personal hearing, before a fraud tag is applied.
- Ambani’s appeal to the Supreme Court is the latest development in this ongoing legal battle.
High Court’s Detailed Ruling
A division bench of Justices Revati Mohite Dere and Neela Gokhale found “no merit” in Ambani’s plea. The industrialist had argued the SBI’s June 13, 2025 order was void as he was denied a personal hearing and access to documents.
The bench countered, stating Ambani never actually requested a hearing. The court validated SBI’s procedure, noting it provided adequate opportunity for a written response, which satisfied principles of natural justice.
Legal Principles and SBI’s Procedure
The judgment clarified that the RBI’s Master Directions on fraud classification mandate only a right to make a written representation, not a right to an in-person hearing. The court said principles of natural justice “cannot be applied in a straitjacket formula.”
“Hence, the requirement of fairness and compliance with the principle of natural justice, stood satisfied,” the court held.
The court detailed that Ambani had submitted his response to SBI’s show-cause notice. The bank proceeded with the fraud classification only after receiving no further communication from him.
With PTI inputs
