NEW DELHI: The Delhi High Court on Wednesday directed the State Bank of India (SBI) and banking regulator Reserve Bank of India (RBI) to maintain status quo with regard to accounts of Anil Ambani-owned Reliance Communications (Rcom), Reliance Telecom, and Reliance Infratel which have been classified as “fraud” accounts by the state-run lender.
The court passed the order while hearing a petition by Reliance Communications’ erstwhile director Punit Garg, who challenged the central bank’s 2016 circular regarding the declaration of the accounts as fraud. Garg argued that the circular violates the principles of natural justice without granting the parties any opportunity to be heard. The bank, meanwhile, said its audit division has found evidence of diversion of funds and such other irregularities.
In view of the orders passed earlier by the high court in similar matters, Justice Prateek Jalan directed the State Bank of India to “maintain status quo till next date of hearing” with regard to the accounts of the three companies. The court went on to add that SBI and RBI were at liberty to take any steps in the nature of an investigation or filing of complaints, or similar proceedings against the erstwhile directors and the three companies independent of the impugned action of declaring the accounts of the three companies as fraud accounts.
This could open up the possibility of a CBI probe since rules mandate that banks should file a complaint with the Central Bureau of Investigation if the amount involved in the fraud is above Rs 1 crore. The court further said that the respondents, including the RBI and the Anil Ambani-group three companies, were at liberty to file their replies to the petition by January 11 and listed the matter for hearing on January 13.