Anil Ambani faces setback as Bombay HC lifts stay on 'fraud' tag, banks resume action

• Bombay High Court scrapped an interim order, allowing Bank of Baroda, Indian Overseas Bank, and IDBI Bank to classify Anil Ambani as a "fraud" borrower.
• This decision comes ahead of Ambani's scheduled appearance before ED officials on February 26 for an alleged ₹40,000 crore bank fraud.
• The court had previously granted temporary relief in December 2025, staying coercive actions by banks due to compliance failures under RBI's Master Directions.
• A division bench set aside the single-judge’s order, terming it “perverse” and “illegal”, allowing banks to resume proceedings.
• Anil Ambani has committed to full cooperation with ED and CBI, assuring he will not travel abroad without court permission.