India, Feb. 24 -- A division bench of the Bombay High Court on Monday set aside an order passed by a single-judge bench restraining three public sector banks from proceeding to classify the loan accounts of industrialist Anil Ambani's companies as "fraud" based on a forensic audit report (FAR) from October 2020.

On December 24, 2025, a single-judge bench of justice Milind Jadhav had accepted Ambani's argument that the report, prepared by external auditor BDO India LLP, could not be relied upon as it was not signed by a duly qualified chartered accountant, as required under the Reserve Bank of India's (RBI's) Master Directions.

However, a division bench of chief justice Shree Chandrashekhar and justice Gautam Ankhad on Monday stated that...