Canara Bank Withdraws 'Fraud' Tag in High Court

In a significant development, Canara Bank informed the Bombay High Court on Thursday that it has withdrawn its order labeling Anil Ambani's loan account linked to Reliance Communications as 'fraudulent'. This decision came as the bank is undergoing insolvency proceedings.

Legal Challenge by Anil Ambani

The High Court bench subsequently disposed of a petition filed by Ambani, challenging the bank's November 8 order. The classification was initially made due to allegations that a Rs 1,050-crore loan issued in 2017 was diverted through a company to settle other liabilities with related parties.

Timing of Communication Raises Questions

Ambani's legal team highlighted that the order was communicated to him on December 25, following a High Court stay on December 20 against a similar classification by the bank. This timing has sparked discussions about the procedural aspects of such classifications.