Post-Resolution Plot Twist: Court Grills Union Bank on Anil Ambani Heir's 'Fraud' Farce

The Delhi High Court questioned Union Bank of India's show cause notice to Jai Anmol Ambani over alleged RHFL account fraud, noting its illogic post-resolution plan approval by lenders and Supreme Court. The court refused to stay proceedings but mandated a reasoned bank order subject to its review on February 27, 2026.

 

The dispute traces to Reliance Home Finance Ltd's (RHFL) credit facilities from Union Bank (formerly Andhra Bank), sanctioned for business but allegedly diverted, leading to NPA classification on September 30, 2019. Jai Anmol Ambani, as director, faces accusations of collusion in siphoning funds, prompting CBI probe and bank's fraud proceedings. Senior counsel Rajiv Nayar argued the notice ignores RHFL's approved resolution plan, affirmed by Supreme Court, rendering fraud claims invalid after five years.

 

Justice Singh echoed concerns, questioning why Union Bank pursues fraud post-resolution without alleging plan flaws. The bank countered that proceedings are at show-cause stage, warranting no judicial interference yet. This echoes prior rulings emphasizing natural justice, like Supreme Court's State Bank of India v Rajesh Agarwal mandating borrower hearings before fraud tags.

 

Key Highlights

The case underscores tensions between banks' recovery efforts and insolvency outcomes, with broader Anil Ambani group probes totaling Rs 14,853 crore in alleged frauds. Next hearing on February 27 could redefine post-NCLT fraud pursuits.

 

Sources: Moneylife.in, LawTrend.in, BarAndBench.com, PGurus.com