New Delhi1 hour ago
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Reliance Group Chairman Anil Ambani’s troubles are showing no sign of abating. The Supreme Court has refused to grant relief on Ambani’s plea challenging the Bombay High Court’s decision that allows banks to declare his loan accounts as ‘fraud’.
A bench headed by Chief Justice Surya Kant said that the order of the Division Bench of the High Court will not come in the way of the pending civil suit in this case.
What is the whole matter?
In fact, two other banks including Indian Overseas Bank had started the process of classifying Anil Ambani’s loan account as ‘fraud’. Ambani had approached the Bombay High Court against this.
In December 2023, the single judge bench of the High Court had given interim relief to Ambani and stayed the action of the banks. However, later the Division Bench of the High Court removed this ban and allowed the banks to proceed. Ambani had challenged this decision in the Supreme Court.
Anil Ambani is the founder of Reliance Communications. (file photo)
Court’s comment on the desire for settlement
During the hearing, Anil Ambani’s lawyer told the court that he wants to resolve the matter with the banks. The Supreme Court refused to comment on this. The court made it clear that it has no opinion on the subject of settlement, it is a matter between the banks and the borrower.
Why may difficulties increase for Ambani?
If banks declare an account as ‘fraud’, it has serious consequences. According to RBI rules, after declaration of fraud, the concerned person or company faces great difficulty in getting any kind of loan from the banking system in future. Also, central investigating agencies like CBI can also start their own investigation in this matter.
Previous background of loan on Anil Ambani
In the last few years, many companies of Anil Ambani have gone through the bankruptcy process. Companies like Reliance Communication (RCom), Reliance Naval and Reliance Capital have huge debts. Recently, Reliance Power and Reliance Infra have tried to free themselves from debt by repaying some of their loans, but classification issues of old bank loans still remain a legal challenge for them.
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