In a significant legal development, the Bombay High Court has dismissed a petition filed by Anil Ambani, challenging the State Bank of India's (SBI) decision to classify Reliance Communications Ltd. (RCom) loan account as fraudulent.

Court Upholds SBI's Decision

The division bench of the Bombay High Court found that Ambani's petition lacked merit, effectively upholding SBI's order. This order not only designated RCom's account as fraudulent but also directed that Ambani be reported to the Reserve Bank of India (RBI) under fraud risk management guidelines.

Ambani's Arguments Rejected

Anil Ambani had contended that he was denied a personal hearing and access to key documents in the process. He argued that the classification violated principles of natural justice and would have drastic civil consequences. However, these arguments failed to sway the court.

SBI and RBI's Stance

Both SBI and RBI opposed Ambani's plea in court. They stated that repeated notices were served to Ambani, but no satisfactory explanation was provided. This lack of response appears to have strengthened the banks' position in the legal proceedings.

Potential Next Steps

With the High Court's dismissal of his petition, Ambani may now consider approaching the Supreme Court to challenge this decision.

Contrasting Outcome with Another Bank

Interestingly, this case stands in contrast to a similar situation with another bank. Canara Bank had previously withdrawn its fraud classification order after Ambani filed a petition. This divergence in outcomes highlights the complexity of such financial and legal matters.

Implications for RCom and Ambani

The court's decision could have significant implications for both Reliance Communications and Anil Ambani personally. The fraud classification of a loan account is a serious matter in the banking sector and can lead to various regulatory and financial consequences.

This development is part of the ongoing challenges faced by Anil Ambani and his companies in recent years, particularly in the telecom sector. The case underscores the increasing scrutiny of large corporate loans by Indian banks and regulators, especially in sectors facing financial stress.

Reliance Communications Limited (RCom) has made significant changes to its board and auditing structure, as approved by shareholders at the company's 21st Annual General Meeting (AGM) held on September 30, 2025.

Key Appointments

Shareholders have given their nod to the appointment of Smt. Priyanka Agarwal as an Independent Director for a five-year term, effective from December 09, 2024. Agarwal, 39, brings a wealth of experience to the board. She is a Fellow Member of the Institute of Company Secretaries of India (ICSI) and a Registered Valuer in Securities & Financial Assets. With 15 years of experience, her expertise spans Corporate Laws, Foreign Exchange Management Act (FEMA), Legal Due Diligence, Corporate Restructuring, and Intellectual Property Rights.

In addition to this board-level appointment, the shareholders also approved M/s. Ashita Kaul & Associates as the company's Secretarial Auditors for a five-year term, covering the financial years 2025-26 to 2029-30. The firm is led by Ms. Ashita Kaul, who boasts over 22 years of experience in secretarial audit and corporate advisory services.

Corporate Insolvency Resolution Process

It's important to note that Reliance Communications Limited continues to operate under a corporate insolvency resolution process. Since June 28, 2019, the company's affairs, business, and assets have been managed by Resolution Professional Mr. Anish Niranjan Nanavaty. This appointment was made by the Hon'ble National Company Law Tribunal, Mumbai Bench.

AGM Proceedings

The AGM, conducted through video conferencing, saw the passage of several resolutions. These included:

• Adoption of audited financial statements
• Reappointment of Smt. Grace Thomas as a director
• Ratification of remuneration payable to the Cost Auditor for the financial year ending March 31, 2026

Voting Results

The company reported that all resolutions put forth at the AGM were passed with significant majority. Key voting results include:

These appointments and approvals come at a crucial time for Reliance Communications, as the company continues to navigate through its insolvency proceedings. The addition of experienced professionals to its governance structure may be seen as a step towards strengthening its corporate oversight and compliance mechanisms.