Cannot interdict show cause notice over fraudulent account: Delhi HC to Anil Ambani's son
New Delhi (PTI): The Delhi High Court on Monday refused to interdict a show cause notice issued by Union Bank of India to industrialist Anil Ambani's son Jai Anmol Ambani in relation to proceedings to declare fraudulent the bank account of Reliance Home Finance Ltd (RHFL).
Justice Jasmeet Singh asked petitioner and RHFL director Jai Anmol Ambani to place his stand before the bank within 10 days and clarified that the effect of any consequent decision taken by the bank would be subject to the court order in the present matter.
The judge asked the bank to pass a "speaking order" and place the same before the court.
"I will not interdict a show cause notice. You argue in show cause. I will say whatever you have to say, they will ensure they address. Show cause notice I will not (interdict). I will not say they will not proceed. I will keep the writ petition pending. Let's see what the order is," the court told Jai Anmol Ambani.
"It is agreed between the parties that the petitioner will reply to the show cause within 10 days from today, appear for a personal hearing on January 30 and the respondent shall, after hearing the petitioner or his authorised representative, pass a speaking order, which shall be brought to the court on the next date of hearing. The effect of the order shall be subject to the order passed in the petition," the court said.
It issued notice on the petition and listed it for further consideration on February 27.
The senior counsel for Jai Anmol Ambani argued that the show cause notice, issued on December 22, 2025, was "inherently flawed".
He argued that since the resolution plan for RHFL had already been approved by all lender banks as well as the Supreme Court, there could not be any allegations of fraud against the company.
It was further stated that in any case, the bank had the relevant information since 2020 and a show cause notice after five years was contrary to the law.
The counsel for the bank opposed the petition and submitted that the court had restricted jurisdiction at the stage of issuance of the show cause notice.
The judge questioned the bank's counsel on how the show cause notice was issued after approval of a resolution plan under the insolvency law, adding that the petitioner's objections should be considered.
The notice was issued following the high court setting aside an earlier notice issued to the petitioner by Union Bank of India to declare the company's bank account fraudulent.
On December 19 last year, the high court granted relief to the petitioner on the ground that no show cause notice was served to him as it was sent to an address which the company vacated in 2020.
The high court, however, made clear that the order would not preclude the bank from issuing a fresh show cause notice to Jai Anmol Ambani and proceeding in the matter.
The CBI has booked Jai Anmol Ambani and RHFL in a case of alleged cheating with Union Bank of India (erstwhile Andhra Bank) that caused the public sector bank a loss of nearly Rs 228 crore.
The agency acted on a complaint from the bank against RHFL, Jai Anmol Ambani and Ravindra Sharad Sudhakar, also a director in the company.
The company availed credit limits to the tune of Rs 450 crore from the bank's SCF branch in Mumbai for business needs, the complaint stated.
It failed to pay the instalments to the bank and hence, the said account was classified as a non-performing asset (NPA) on September 30, 2019, according to officials.
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Rajnath Singh chairs IGoM meet, urges constant vigil over West Asia crisis
New Delhi (PTI): Defence Minister Rajnath Singh on Thursday emphasised the need for round-the-clock monitoring of the West Asia conflict and called for a calibrated response to deal with any eventuality to ensure that national interests remain protected.
Singh made the comments while chairing a high-level meeting of the Informal Group of Ministers (IGoM) set-up to monitor the situation in West Asia.
The meeting was attended by External Affairs Minister S Jaishankar, Finance Minister Nirmala Sitharaman, Oil Minister Hardeep Singh Puri, Power Minister Manohar Lal, Chemicals and Fertilizers Minister J P Nadda, Consumer Affairs Minister Prahlad Joshi and Minister of Railways, Information and Broadcasting, Electronics and Information Technology Ashwini Vaishnaw.
In view of the "uncertain situation", the defence minister underlined the importance of round-the-clock monitoring of the situation and the need to respond in a calibrated manner to deal with any eventuality, an official readout said.
He stressed on the need to leave no stone unturned to ensure that the people of the country face the minimum effect of the conflict, it said.
It was the second meeting of the IGoM after it was set up last month.
The IGoM was apprised of the measures being taken by the government in the wake of the ongoing West Asia conflict, Singh said on social media.
"We also deliberated upon the next steps to be taken by the government to mitigate any adverse impact arising due to the ongoing conflict," he said.
The defence ministry said in the readout said, "In the meeting, the seven empowered groups of secretaries briefed the IGoM on the steps being taken to tackle the situation."
"The IGoM was apprised about measures undertaken by the Ministry of Finance to address concerns arising due to global trade disruptions and provide relief and support to the industry, especially manufacturing, and bolster investor confidence," it said.
It listed measures including notification issued on Wednesday on full customs duty exemption on 40 critical petrochemical products till June 30.
The ministry also mentioned announcement of a special one-time relief measure for eligible units in SEZs to sell manufactured goods in Domestic Tariff Area (DTA) at concessional customs duty rates to be effective from April 1 to March 31.
It also noted another notification issued by the Department of Revenue clarifying that the provisions of GAAR (General Anti Avoidance Rules) will not be invoked in respect of investments made prior to April 1, 2017.
"These measures will reduce cost pressures on downstream sectors including textiles, packaging and pharmaceuticals, facilitate supply stability in the country and provide requisite clarity for investors contemplating investments in India," the readout said.
Defence Minister Singh appreciated the government's decision to impose a 25 per cent cap on the monthly increase in aviation turbine fuel prices for domestic operations, with effect from April 1.
This step will help protect the people from sudden increase in fares, he said.
The government has accorded highest priority to domestic LPG supply, with refinery production enhanced to fully meet consumption requirements, according to the readout.
"The IGoM was informed that there have been no reports of dry-out at LPG distributorships, and delivery of domestic LPG (liquefied petroleum gas) cylinders continues as per the normal schedule. The temporary supply concerns arose due to instances of hoarding and black marketing, which triggered panic buying in certain areas," it said.
The ministers were informed that strict enforcement action is being undertaken, with raids being carried out across multiple states and Union territories to curb hoarding and black marketing of LPG, the ministry said in the readout.
Action has also been taken against some LPG distributors who engaged in malpractices, it said.
"To support migrant labour and low-consumption households, the government is ensuring adequate availability of 5 kg free trade LPG cylinders, and since March 23, over 4.3 lakh such cylinders have been sold. Special focus is being given to states where demand is higher," it said.
The IGoM was apprised that industrial requirements dependent on commercial LPG are being met, with over 80 per cent of pre-crisis supply levels being maintained to ensure continuity of operations.
"Special meetings have been held with ministries and stakeholders of different industries to understand their demand and meet their needs. Oil PSUs are ensuring continued supply of Auto LPG across the country," the readout noted.
"However, some supply constraints are being faced by private operators due to their procurement challenges, which is why lines are being observed at PSU auto LPG pumps. Wherever the autos are dual feed and can use petrol, they are being encouraged to use petrol," it said.
