The Bombay High Court on Friday dismissed a writ petition filed by industrialist Anil Ambani challenging State Bank of India's decision to classify Reliance Communications Ltd.'s loan account as "fraud," reported Live Law.
SBI's June 13 order designated RCom's account as fraudulent and directed that Ambani, its erstwhile non-executive director, be reported to the Reserve Bank of India under fraud risk management guidelines. Aggrieved, Ambani approached the high court in July alleging violation of principles of natural justice, arguing that he was not granted a personal hearing and denied key documents.
"Such classification... has drastic civil consequences," his plea stated, calling SBI's action arbitrary and lacking transparency. The bank cited RBI's July 2016 Master Directions on Fraud Risk Management and its internal policy.