- KR Bharat
- 2026-02-25
The Bombay High Court has lifted the stay on three public sector banks, allowing them to proceed with classifying the bank accounts of industrialist Anil Ambani and Reliance Communications as fraud. The division bench observed that not every alleged breach of fraud classification rules issued by the Reserve Bank of India (RBI) warrants judicial review.
The court stated that RBI’s Master Directions are designed to safeguard public money and ensure timely identification of fraudulent activities and borrowers. Therefore, such regulatory measures cannot be diluted through routine judicial intervention unless there is a clear violation of legal principles.
The bench, headed by Chief Justice Shree Chandrashekhar along with Justice Gautam Ankhad, set aside a December 2025 order of a single bench that had earlier stayed the banks’ action. With the latest ruling, banks can now continue proceedings as per RBI guidelines regarding fraud classification.
