Mumbai (PTI): The Canara Bank on Thursday informed the Bombay High Court that it has withdrawn its order classifying as “fraudulent” the loan account of a firm linked to industrialist Anil Ambani.

After the bank’s disclosure, a bench of Justices Revati Mohite Dere and Neela Gokhale disposed of the petition filed by Ambani challenging the bank’s order, saying nothing survives in it.

The bench said the withdrawal order shall be informed to the Reserve Bank of India.

The loan account concerned Ambani’s firm Reliance Communications, which is undergoing insolvency proceedings.

On November 8, 2024, the bank classified the loan account as “fraud” for reasons including that a Rs 1,050 crore loan extended in 2017 was “routed” to a group company to pay other liabilities to connected or related parties.

The order was based on the RBI’s master circular related to fraud accounts that laid guidelines for such declarations.

In February this year, the HC stayed the order pending hearing of the plea.

At the time, the HC had questioned whether the RBI would take action against banks that have repeatedly defied its master circular and the Supreme Court’s ruling, which mandates that borrowers must be given a hearing before their accounts are declared "fraudulent".

Ambani had challenged the Canara Bank’s order, arguing that he was not given a hearing before his loan account was classified as fraudulent.

The industrialist had contended that the fraud classification was issued on November 8, 2024, but was only communicated to him on December 25, after the HC had already stayed a similar classification in a related matter.

Ambani further claimed that Canara Bank had informed the RBI about the fraud classification as early as September 6, 2024, even before officially issuing the order.

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Bengaluru: Leader of the Opposition R. Ashoka launched a scathing attack on MLC Dr. Yathindra, demanding that he retract his controversial statement comparing Chief Minister Siddaramaiah to the late Maharaja Nalwadi Krishnaraja Wadiyar. Ashoka urged Yathindra to apologize to the people of Karnataka if he had even a shred of conscience and any respect for the Mysuru royal lineage.

In a strongly worded social media post on Sunday, Ashoka stated, “Comparing Siddaramaiah to Nalwadi Krishnaraja Wadiyar is nothing short of absurd. Where is Nalwadi, who was bestowed the title of ‘Rajarshi’ by Mahatma Gandhi himself, and where is Siddaramaiah, who has stooped to being a puppet in the hands of fake Gandhis for the sake of power?”

He continued his critique by contrasting the enduring legacy of Nalwadi, remembered fondly by Kannadigas for his people-centric development, with what he termed as Siddaramaiah’s failure to manage Karnataka’s economy, burdening every household with debt.

Ashoka highlighted several stark differences, while Nalwadi built Mysore University over a century ago, Siddaramaiah is shutting down nine universities due to lack of funds. Nalwadi famously sold his family’s gold to build the KRS dam, whereas Siddaramaiah is accused of grabbing 14 sites meant for the public. Nalwadi established Bhadravati Iron & Steel Plant, Sandalwood Soap Factory, and Mysore Paper Mills. In contrast, Ashoka claimed Siddaramaiah's governance drove away industries, investors, and entrepreneurs. Nalwadi pioneered reservations for the backward classes long before it became mainstream. Siddaramaiah, Ashoka alleged, is reducing social justice to a gimmick by sticking labels on doors in the name of surveys.

While acknowledging Yathindra’s emotional attachment to his father, Ashoka emphasized that comparing Siddaramaiah to a visionary like Nalwadi was “laughable, baseless, and a gross insult” to the late king.

In his concluding remarks, Ashoka slammed the government for ignoring farmers’ needs despite an early monsoon. He accused the administration of being caught up in internal power struggles and negligence, forcing farmers into despair. “This government will not be spared from the curse of the farmers,” he warned.

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