Delhi HC Questions Union Bank Notice to Anil Ambani's Son Over Fraud Claim
Overview
Delhi High Court scrutinizes Union Bank of India's show cause notice to Jai Anmol Ambani concerning Reliance Home Finance Limited's account. Justices questioned the notice's validity post-insolvency resolution approval, deeming it illogical. Ambani must now respond, with the bank to issue a speaking order pending court review.
Stocks Mentioned
Court Questions Notice Validity
The Delhi High Court has directly challenged Union Bank of India regarding a show cause notice issued to Jai Anmol Ambani, son of industrialist Anil Ambani. Justice Jasmeet Singh questioned the rationale behind the notice, dated December 22, 2025, concerning alleged fraudulent activity in the account of Reliance Home Finance Limited (RHFL).
The court pointed out that RHFL had already undergone insolvency proceedings, with a resolution plan approved by lenders, including Union Bank, and subsequently by the Supreme Court. Justice Singh opined that issuing a notice post-approval of such a plan was nonsensical, asking the bank's counsel, "Notice has to make sense no? Why are you issuing a show-cause notice once the [resolution] plan has been approved?"
Ambani's Challenge
Senior Advocate Rajiv Nayar, representing Anmol Ambani, argued that the notice was fundamentally flawed. He contended that with the RHFL resolution plan in place, no allegations of fraud against the company could stand. Nayar further highlighted that the notice was based on a 2020 audit, issued some five years later, suggesting a considerable delay in the bank's action.
Bank's Stance and Next Steps
Counsel for Union Bank argued against staying the proceedings at this preliminary stage, emphasizing that the matter was still at the show cause notice phase. The court, however, opted not to halt the process entirely. Instead, it directed Anmol Ambani to provide a written reply to the notice and to appear for a personal hearing or send an authorized representative.
The bank is mandated to pass a detailed, reasoned "speaking order" after hearing Ambani. This order will be presented to the court on the next hearing date, February 27. The court explicitly stated that the effect of the bank's final order would be contingent upon the outcome of the ongoing writ petition.
