Bombay HC quashes order staying proceedings against Anil Ambani to classify his bank accounts as fraud

In a setback to industrialist Anil Ambani, the Bombay High Court connected Monday (February 23, 2026) quashed a azygous Bench interim bid that stayed proceedings initiated against him and Reliance Communications Ltd to classify their slope accounts arsenic fraud.

A part Bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad allowed the appeals filed by 3 nationalist assemblage banks and auditor steadfast BDO India LLP against the December 2025 interim bid passed by a azygous Bench of the HC.

The part Bench, portion quashing the azygous Bench order, termed it "illegal and perverse".

Mr. Ambani's counsels sought the HC to enactment its bid truthful that they could attack the Supreme Court, but the petition was declined.

The banks past period challenged a December 2025 single-Bench bid granting interim alleviation to Mr. Ambani and his company. The bid had cited violations of mandatory RBI rules and a classical lawsuit of banks "waking up from heavy slumber" aft years.

The azygous Bench bid stayed each contiguous and aboriginal enactment by Indian Overseas Bank, IDBI Bank and Bank of Baroda, noting that the enactment was based connected a legally flawed forensic audit and violated the Reserve Bank of India's (RBI) mandatory guidelines.

The 3 banks successful their entreaty said the forensic audit, which led to accounts being classified arsenic "fraud", was legally valid and based connected superior findings of money siphoning and misutilisation. This was recorded successful the study submitted by the audit steadfast BDO LLP, they contended.

The banks, successful their plea, besides said Mr. Ambani had raised a method situation to the forensic audit earlier the azygous bench.

They sought the part Bench to quash the azygous Bench's interim order, claiming it was "perverse".

Mr. Ambani had challenged earlier the azygous Bench show-cause notices issued by the Indian Overseas Bank, IDBI and Bank of Baroda, seeking to state his and Reliance Communications' accounts arsenic fraud accounts.

As an interim relief, helium sought a enactment of the notices and an injunction against immoderate coercive enactment connected the crushed that BDO LLP was not qualified to behaviour the forensic audit arsenic its signatory was not a chartered accountant.

BDO LLP was an accounting advisor steadfast and not an audit firm, Mr. Ambani claimed.

The azygous Bench had agreed with Mr. Ambani and stayed the enactment by the banks.