Bombay High Court Stays Canara Bank's 'Fraud' Tag on Anil Ambani's RCom-Linked Loan Account

In a recent development, the Bombay High Court has stayed Canara Bank's order that declared the loan account of Reliance Communications Ltd, associated with industrialist Anil Ambani, as fraudulent. The order was stayed on February 7, 2025, following certain media reports. The bank had classified the loan account as fraudulent in November 2024, stating that a Rs 1,050 crore loan extended in 2017 was routed to a group company to pay other liabilities to connected/related parties. However, Anil Ambani's advocate argued that he was not given a hearing before the classification. The High Court has sought a response from the Reserve Bank of India (RBI) in this matter.