SC setback, ED action: Mounting pressure on Anil Ambani’s business empire

In a major turn in the ongoing financial case involving industrialist Anil Ambani , both court rulings and enforcement action have brought fresh momentum to allegations of loan irregularities linked to his group companies.

The issue began when banks such as Indian Overseas Bank , IDBI Bank and Bank of Baroda noticed that large loans given to companies like Reliance Communications and Reliance Home Finance had turned stressed and difficult to recover. A forensic audit was ordered, which reportedly flagged possible fund diversion and use of shell companies . Based on this, banks issued notices asking why these accounts should not be officially declared as “fraud.”

At this stage, a single judge bench of the Bombay High Court had temporarily stayed the banks’ action in December 2025. The reason was that Ambani argued the audit was legally flawed and did not follow RBI rules , and the court felt the issue needed proper examination before allowing such a serious label.

However, this relief did not last. A division bench of the same High Court later cancelled that stay , agreeing with the banks that the process should continue. It said the earlier pause was not justified at that stage, effectively allowing banks to move forward again.

Ambani then approached the Supreme Court , seeking to stop the proceedings. But the apex court refused to intervene , allowing banks to continue their action while giving Ambani one last chance to argue his case before a single judge bench, which has been asked to decide the matter quickly .

At the same time, the Enforcement Directorate has arrested two former group executives under the Prevention of Money Laundering Act , linking the case to a wider probe based on findings of the Central Bureau of Investigation .

Together, the court’s stance and the arrests mark a critical phase , where the question is no longer just about unpaid loans, but whether they involved serious financial wrongdoing .