India, July 11 -- The Canara Bank has withdrawn its order classifying as "fraudulent" the loan account of Anil Ambani-led Reliance Communications (RCom), currently undergoing insolvency proceedings. The disclosure was made before the Bombay High Court on Thursday.

Following the bank's submission, a division bench of justices Revati Mohite Dere and Neela Gokhale disposed of a petition filed by Ambani challenging the fraud classification, noting that nothing survived in the plea. The court also directed that the withdrawal be communicated to the Reserve Bank of India (RBI).

The public sector lender had initially classified the account as fraudulent on November 8, 2024, citing alleged irregularities in a Rs.1,050 crore loan disbursed in 20...