Anil Ambani gets temporary relief from coercive action over BoB order declaring loan account fraudulent

However, Ambani’s lawyer told the bench of Justices Riyaz I Chagla and Farhan P Dubash that BDO India LLP forensic audit report was commissioned by State Bank of India (SBI) as a lead bank of consortium of banks and BoB was not part of the same consortium that granted loans and therefore its action was illegal.

The BoB submitted that while the petitioner apprehended action, SBI had already approached the Central Bureau of Investigation (CBI) after categorising a loan account as fraudulent and the central agency has sought details from the BoB.

After the BoB’s lawyer sought time to respond to Ambani’s plea, the HC granted the same and asked it to file an affidavit in reply by September 23.

The lawyer also on instructions from the bank officials said it will not act in furtherance of the impugned notice/order till next hearing on September 24 and HC said that there shall not be any coercive action against the petitioner till then.

The RBI’s decision on fraud risk management in banks was taken under the Reserve Bank of India (Frauds Classification and Reporting by Commercial Banks and Select FIs) Directions of 2016. The RBI had also directed banks to devise their own policies.