Court denies interim relief to Anil Ambani in suit against banks over fraud tag

The Bombay High Court on Wednesday refused to grant any interim relief to industrialist Anil Ambani, who has challenged a consortium of banks — Indian Overseas Bank (IOB), IDBI Bank and Bank of Baroda (BoB) — for declaring his accounts as fraud on the basis of what he terms an “illegal report” by forensic auditor BDO India. Ambani has argued that BDO is not recognised as an “auditor” under the RBI’s revised Master Directions on Fraud issued on July 15, 2024. The Bombay High Court on Wednesday refused to grant any interim relief to industrialist Anil Ambani, who has challenged a consortium of banks — Indian Overseas Bank (IOB), IDBI Bank and Bank of Baroda (BoB) — for declaring his accounts as fraud on the basis of what he terms an “illegal report” by forensic auditor BDO India. Ambani has argued that BDO is not recognised as an “auditor” under the RBI’s revised Master Directions on Fraud issued on July 15, 2024. Opposing Joshi’s request, advocates Zarir Bharucha, Rishi Thakur and Dhwani Gala for IDBI, and senior counsel Kevic Setalvad for BoB, urged the court to hear them before passing any further orders.

Bharucha submitted that Ambani had already appeared before IDBI pursuant to principles of natural justice, and pointed out that Ambani had earlier filed — and withdrawn — a writ petition challenging IDBI’s fraud proceedings. Advocate Kunal Dwarkadas, appearing for BDO, also opposed the grant of any interim relief. After hearing the banks and BDO, Justice Jadhav declined to stay the proceedings and directed the banks to file their replies to Ambani’s suit and the interim reliefs he has sought. The matter will now be heard on December 17. BDO India’s forensic audit was commissioned by the consortium of banks, and on the basis of this report, several lenders, including the State Bank of India, declared Ambani’s account as fraud. SBI has also filed an FIR with the CBI.