Anil Ambani withdraws plea from Bombay High Court challenging IDBI Bank show-cause notice
Court permits withdrawal, Ambani to respond directly to Bank’s proceedings
Industrialist Anil Ambani on October 28 withdrew his writ petition from the Bombay High Court challenging a show-cause notice issued by IDBI Bank concerning alleged fraud classification of loans related to Reliance Communications Ltd. The case was heard by Justice Sandesh Patil during a vacation sitting, where Ambani sought an adjournment and a fair opportunity to review bank documents before personal hearings.
The Court indicated reluctance to grant interim relief, leading Ambani to withdraw the plea, with the Court allowing him to raise his concerns directly before the bank. The bank’s notice stemmed from the RBI’s Master Directions on Fraud Risk Management, which classifies loan accounts as fraud if funds are diverted or misused, with the case involving loans of around ₹750 crore.
Ambani was represented by a team of advocates, while IDBI Bank was represented by Senior Advocate Zarir Bharucha. Previously, Ambani had challenged the State Bank of India’s decision to declare his loan accounts as fraud, but that plea was also dismissed by the Court.