Anil Ambani withdraws plea against IDBI over Rs 750-crore Reliance Com loan case

Industrialist Anil Ambani on Tuesday withdrew his petition seeking relief against the ongoing proceedings initiated by IDBI Bank in connection with a Rs 750 crore loan granted to Reliance Communications Ltd (RCom).

The petition, filed by Ambani and argued by advocates Ankit Lohia and Ameet Naik, had sought directions to restrain the bank from holding a personal hearing until all relevant material was furnished to him. The plea contended that proceeding with the hearing without complete disclosure would cause “grave prejudice” to the petitioner.

BANK OPPOSES PLEA

Advocates Zarir Bharucha, Dhwani Gala and Rishi Thakur, appearing for IDBI Bank, opposed the petition, arguing that it was not maintainable. Bharucha told the court that the bank had already shared the forensic audit report, the basis for initiating action under the RBI’s Master Directions on Fraud Risk Management in Commercial Banks, along with all annexures.

He further submitted that Ambani had been given multiple opportunities for a personal hearing but had not availed them. The next hearing before the bank’s fraud examination committee is scheduled for October, 30, 2025, he said, adding that the process was being conducted strictly in accordance with RBI’s directions.

COURT DECLINES INTERIM RELIEF

After hearing both sides, the vacation bench of Justice Sandesh D Patil expressed its disinclination to grant any ad-interim relief. Following this, Lohia, on Ambani’s instructions, informed the court that the petition would be withdrawn and that his client would appear before the bank “under protest.”

Lohia also sought liberty for Ambani to raise before the bank all the contentions made in the petition and to approach an appropriate forum later if the outcome was adverse. Bharucha did not object to this request.

The court then disposed of the writ petition as withdrawn, granting liberty as prayed for. Since the matter was withdrawn, the bench did not comment on the merits of the case.

BACKGROUND

IDBI Bank had issued a show cause notice to Ambani under the RBI’s Master Directions on Fraud Risk Management in Commercial Banks. The guidelines empower banks to declare a company and its directors as “fraud” if funds are found to have been diverted or misused.

The proceedings stem from loans extended to Reliance Communications Ltd, which went into insolvency after defaulting on its debt obligations.

- Ends