In a closely watched legal development in New Delhi, the Delhi High Court has sharply questioned a show-cause notice issued by Union Bank of India to Jai Anmol Ambani, son of industrialist Anil Ambani, over alleged fraud linked to a company account. The court expressed concern over both the timing and reasoning behind the notice and directed the bank to ensure a properly reasoned decision.
The notice, dated December 22, 2025, relates to allegations connected to the account of Reliance Home Finance Limited. The bank proposed classifying the account as fraudulent based on a forensic audit that allegedly pointed to diversion and misuse of loan funds, with losses estimated at around ₹228 crore.
During the hearing, Justice Jasmeet Singh observed that the resolution plan for the company had already been approved earlier. Importantly, the plan had received the consent of lenders, including the bank itself, and had also been approved by the Supreme Court of India. In this context, the court questioned why a fraud notice was being issued several years after the resolution had been finalised, noting that the move appeared to lack logical justification.
Senior Advocate Rajiv Nayar, representing Ambani, argued that issuing such a notice after approval of the resolution plan was fundamentally flawed. He also highlighted that the forensic audit relied upon by the bank dated back to 2020, raising concerns over the nearly five-year delay in initiating proceedings. According to him, the timing weakened the credibility of the allegations.
The bank’s counsel, however, maintained that the notice was only at a preliminary stage and that the process should be allowed to continue without judicial interference. While the court declined to quash the notice outright, it stressed that procedural fairness must be followed. This includes giving Ambani a proper opportunity to respond and ensuring that the bank issues a detailed, reasoned order before taking any further action.
As per the court’s directions, Ambani will submit his response and may appear personally or through an authorised representative. The bank has been instructed to pass a “speaking order” explaining its decision before the matter is taken up again on February 27, 2026.
Legal experts say the court’s observations reinforce the importance of due process and transparency in high-stakes financial cases. The outcome of the matter is expected to have wider implications for banking practices and corporate accountability in India.
