Anil Ambani Moves Supreme Court Against Bombay HC Order Allowing Banks To Continue Fraud Classification Proceedings

A bench comprising CJI Surya Kant and Justice Joymalya Bagchi will hear the matter on April 1.

The case arises from a forensic audit report dated October 15, 2020, relating to Reliance Communications and other ADAG entities, involving alleged irregularities of about Rs 31,580 crore. Based on the report, banks issued show-cause notices in 2024 and classified Anil Ambani as “fraud” on September 2, 2025. Ambani challenged the action, alleging that the report was invalid, prepared by an ineligible auditor, and relied upon in violation of principles of natural justice.

On December 24, 2025, a single judge of the Bombay High Court granted interim relief to Ambani, holding prima facie that the forensic audit was not in line with RBI directions and that fraud classification could have serious civil consequences. The court observed that such action could have “drastic and disastrous consequences" impacting financial access and leading to civil death and held that Ambani had made out a “reasonably strong case for trial.”

On February 23, 2026, a Division Bench set aside the interim relief while allowing appeals filed by the banks and the auditor, holding that the single judge had examined the validity of the forensic report at an interim stage and gone beyond the pleadings. The bench also accepted the lenders' argument that the audit had been conducted under earlier RBI directions and that the challenge was raised belatedly.

Ambani has now approached the Supreme Court challenging the Division Bench order