Published on : 07 Oct 2025, 1:00 pm 4 min read

Industrialist Anil Ambani, as the promoter and person in control of Reliance Communications Limited (RCOM), is liable to face consequences for the classification of company's loan account as fraud, the Bombay High Court held [Anil Ambani Vs State Bank of India].

A Division Bench of Justices Revati Mohite Dere and Neela Gokhale observed that when a company's loan account is classified as fraud by the bank, the promoters/ directors who were in control of the company will have to face penal consequences.

“ It is well settled that once the company’s account is classified or declared to be a fraud account, the promoters/directors who were in control of the company are liable to penal measures and to be reported as fraud and debarr

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