The Supreme Court of India has refused to grant relief to industrialist Anil Ambani, declining his request to put a hold on the “fraud” classification of his loan accounts by a group of banks.

A Bench headed by Chief Justice of India Justice Surya Kant, along with Justices Joymalya Bagchi and Vipul Pancholi, chose not to interfere with the earlier ruling of the Bombay High Court, which had withdrawn interim protection granted to Ambani.

The Court said it saw no valid reason to stay the decision of banks—including Bank of Baroda, Indian Overseas Bank and IDBI Bank—to classify the loan accounts as fraudulent under the Reserve Bank of India’s 2024 guidelines.

Further, the Bench made it clear that the High Court’s observations would not influence the final decision in the civil case filed by Ambani challenging the fraud tag. It also asked for the trial to be fast-tracked, while keeping other legal options open for him.

During the hearing, senior advocate Kapil Sibal, representing Ambani, argued that being labelled as “fraud” would have far-reaching consequences. He described it as a “virtual civil death,” saying it would effectively cut off Ambani’s access to credit. He also questioned the process behind the classification, pointing to alleged flaws in the forensic audit.

The Court, however, remained unconvinced, noting the gravity of the allegations, which involve the suspected diversion of large amounts of public funds. It also took into account ongoing investigations by agencies like the Central Bureau of Investigation and the Enforcement Directorate.

After the order was passed, Sibal told the Bench that Ambani was open to settling the matter with the banks. Although Solicitor General Tushar Mehta initially objected, the Court recorded the statement, clarifying that it was not commenting on any potential settlement.

The dispute stems from loan accounts linked to companies of the Reliance Group, where banks relied on forensic audit findings to classify them as fraud—an action that carries serious financial and legal consequences.