MUMBAI, Feb. 8 -- The Bombay high court on Friday stayed a Canara Bank order passed in November 2024 classifying the loan account of industrialist Anil Ambani's now defunct Reliance Communications (RCom) as fraudulent.
A division bench of justices Revati Mohite-Dere and Neela Gokhale noted that the bank's action was in contravention of the Reserve Bank of India's master circular and a Supreme Court ruling mandating that borrowers must be given a hearing before banks classify their accounts as fraudulent.
The bench also sought a response from the Reserve Bank of India (RBI) on whether it proposes to take any action against banks that have repeatedly defied its master circular and Supreme Court precedents.
In November 2024, Canara Bank had...