The Supreme Court has declined to entertain industrialist Anil Dhirubhai Ambani's challenge to the classification of loan accounts of Reliance Communications group companies as 'fraud', citing serious allegations of siphoning and diversion of thousands of crores of public money.
A bench led by Chief Justice of India Surya Kant observed that Ambani's attempt to challenge the fraud classification on a technical objection could not be examined in isolation when substantive issues were already pending before a civil forum.
The court noted that the Bombay High Court's division bench had already examined the issue on merits in its February order and recorded findings on diversion of funds, while also recognising substantial compliance with regulatory requirements in the appointment of the auditor.
Ambani was told to pursue remedies before the civil court where a related suit is pending, and the court clarified that its refusal to intervene would not prejudice the civil suit.
The case originates from a forensic audit report of October 2020 that flagged alleged irregularities of around ₹31,580 crore across entities of the Anil Dhirubhai Ambani Group (ADAG).
