Anil Ambani Withdraws Plea Against IDBI Bank in ₹750-Crore Reliance Communications Loan Case
Industrialist Anil Ambani has withdrawn his plea challenging IDBI Bank’s fraud proceedings over a ₹750-crore loan granted to Reliance Communications (RCom), marking the latest development in the long-running dispute between the bank and the debt-laden telecom firm.
The Bombay High Court’s vacation bench, presided over by Justice Sandesh D Patil, on Tuesday declined to grant interim relief to Ambani, following which his counsel withdrew the petition. Ambani has agreed to appear before the bank’s fraud identification committee “under protest.”
Ambani’s Petition and Court’s Observations
The petition, filed by Ambani through advocates Ankit Lohia and Ameet Naik, sought to restrain IDBI Bank from conducting a personal hearing until all documents and materials relied upon by the bank were shared with him. The plea argued that proceeding without full disclosure would cause “grave prejudice” to the petitioner.
However, the court was not inclined to stay the process. After the bench indicated it would not grant any ad-interim protection, Ambani’s counsel informed the court of his client’s decision to withdraw the petition while reserving his right to pursue legal remedies later, depending on the bank’s decision.
Bank Argues Due Process Was Followed
Representing IDBI Bank, advocates Zarir Bharucha, Dhwani Gala, and Rishi Thakur opposed the petition, calling it “not maintainable.” They informed the court that the bank had already provided Ambani with the forensic audit report—the key document forming the basis of its action—along with annexures and other supporting material.
They also noted that the bank had granted Ambani multiple opportunities for a personal hearing, which he had failed to attend. The next hearing before the bank’s Fraud Examination Committee is scheduled for October 30, 2025, they added.
The bank clarified that the proceedings were being conducted strictly in line with the RBI’s Master Directions on Fraud Risk Management in Commercial Banks.
Court’s Decision
After hearing arguments from both sides, the court declined to interfere at this stage. It permitted Ambani to appear before IDBI’s committee “under protest” and to raise all contentions mentioned in his petition before the bank itself. The court also granted him liberty to approach an appropriate forum later if the decision goes against him.
With these observations, the court disposed of the writ petition as withdrawn and refrained from making any comment on the merits of the case.
Background: The ₹750-Crore Loan Dispute
The dispute originates from loans extended by IDBI Bank to Reliance Communications Ltd (RCom), which subsequently went into insolvency after defaulting on large debt obligations.
Following a forensic audit, IDBI Bank initiated proceedings against Ambani under the RBI’s Master Directions on Fraud Risk Management, which empower banks to declare a borrower or its directors as “fraud” if evidence of fund diversion or misuse is found.
The case is part of a broader scrutiny of several debt-laden entities linked to the Reliance Anil Dhirubhai Ambani Group (ADAG) following defaults on multiple loans during the past decade.
