Anil Ambani, a prominent businessman, has decided to retract his petition requesting relief from the ongoing actions taken by IDBI Bank concerning a Rs 750 crore loan provided to Reliance Communications Ltd (RCom). The petition, presented by Ambani and advocated by Ankit Lohia and Ameet Naik, aimed to prevent the bank from conducting a personal hearing without providing all relevant information. It argued that proceeding with the hearing without complete transparency would unfairly disadvantage Ambani.
In response to Ambani’s petition, IDBI Bank, represented by advocates Zarir Bharucha, Dhwani Gala, and Rishi Thakur, opposed the plea, asserting that it was not valid. Bharucha informed the court that the bank had already shared the forensic audit report, which formed the basis for invoking action under the RBI’s guidelines on Fraud Risk Management in Commercial Banks, along with all supporting documents. He also mentioned that Ambani had been offered multiple opportunities for a personal hearing, which he had not utilized. The bank’s fraud examination committee is scheduled to convene on October 30, 2025, in accordance with the RBI’s directives.
Following arguments from both sides, the vacation bench led by Justice Sandesh D Patil declined to grant interim relief. Subsequently, Ambani’s legal representative, Lohia, informed the court, based on Ambani’s instructions, that the petition would be withdrawn and that Ambani would engage with the bank “under protest.” Lohia also requested permission for Ambani to present all the arguments from the petition to the bank and to explore further options if the outcome was unfavorable, a request to which Bharucha did not object.
The court accepted the withdrawal of the petition and granted Ambani the liberty to raise the same contentions before the bank and pursue other avenues if necessary. The bench refrained from commenting on the case’s merits, given its withdrawal.
The backdrop of the situation involves IDBI Bank issuing a show cause notice to Ambani under the RBI’s guidelines on Fraud Risk Management in Commercial Banks, empowering banks to label a company and its directors as “fraudulent” in cases of fund diversion or misuse. These actions are a result of loans provided to Reliance Communications Ltd, which faced insolvency following defaults on its financial obligations.