The Delhi High Court questioned why Union Bank issued a fraud-related show cause notice to Jai Anmol Ambani after Reliance Home Finance’s resolution plan was already approved by lenders and the Supreme Court. While refusing to stay the proceedings, the Court directed the Bank to hear Ambani and pass a reasoned order, subject to the High Court’s final decision.
The Delhi High Court on Monday questioned the logic behind a show cause notice issued by Union Bank of India to industrialist Jai Anmol Ambani, son of Anil Ambani, in connection with alleged fraudulent transactions in the account of Reliance Home Finance Limited.
Justice Jasmeet Singh noted that the show cause notice was issued on December 22, 2025, even though Reliance Home Finance Limited had already gone through insolvency proceedings and a resolution plan had been approved by the lenders, including Union Bank of India, as well as by the Supreme Court of India. The Court observed that once the resolution plan stood approved, issuing such a notice did not appear logical.
During the hearing, the Court questioned the Bank’s counsel and remarked,
“Notice has to make sense no? Why are you issuing a show-cause notice once the [resolution] plan has been approved? Where have you said that this was wrongly approved or that there was a fallacy in the resolution plan?”
Despite raising serious concerns over the timing and reasoning of the notice, Justice Singh clarified that the Court would not stay the proceedings at this stage. Instead, the Court directed that Jai Anmol Ambani should submit his reply to the show cause notice and appear before the Bank, either personally or through an authorised representative, for a personal hearing.
The Court further directed that the Bank must pass a detailed and reasoned speaking order after hearing Ambani. It also directed that the order passed by the Bank should be placed before the High Court on the next date of hearing.
Justice Singh made it clear that
“The effect of the order shall be subject to the order passed in this writ petition.”
The matter has been listed for further hearing on February 27.
The directions were passed while hearing a petition filed by Jai Anmol Ambani challenging the show cause notice issued by Union Bank of India.
Earlier, the Delhi High Court had already quashed the Bank’s decision to classify the company’s account as fraudulent, observing that the classification was done without giving Ambani an opportunity to respond through a show cause notice.
Appearing for Ambani, Senior Advocate Rajiv Nayar argued that the show cause notice dated December 22, 2025, was fundamentally flawed. He submitted that once the resolution plan of Reliance Home Finance Limited had been approved, there could be no allegation of fraud against the company.
He further argued that even in the worst-case scenario, the show cause notice relied on a forensic audit from the year 2020, but the notice itself was issued nearly five years later, which according to him was unjustified and unreasonable.
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On the other hand, counsel appearing for Union Bank of India opposed the plea and argued that the matter was still at the stage of a show cause notice. The Bank contended that the proceedings should not be stayed at this preliminary stage and that Ambani should first respond to the allegations before seeking judicial intervention.
After hearing both sides, the Court reiterated that it was not stopping or interdicting the proceedings at this stage. However, it emphasised that Ambani must be given a proper hearing by the Bank, and that any outcome of the proceedings would remain subject to the final orders passed by the High Court.
The case arises in the backdrop of serious criminal allegations against companies belonging to the Anil Ambani group. The Central Bureau of Investigation has registered multiple cases alleging fraud amounting to nearly ₹14,853 crore against various group companies.
According to the CBI, Jai Anmol Ambani cheated Union Bank of India and caused a wrongful loss of nearly ₹228 crore to the public sector bank. The agency has alleged that Reliance Home Finance Limited, where Jai Anmol Ambani served as a director, had borrowed large sums of money but failed to repay them.
As per reports cited by the investigating agency, a forensic audit revealed that the loan funds were allegedly diverted and misused instead of being utilised for their approved purposes. This alleged misuse of funds led to the account becoming a non-performing asset.
Union Bank of India has claimed that it suffered a wrongful loss of approximately ₹228.06 crore. After classifying the account as fraudulent, the Bank lodged a complaint with the CBI alleging offences of criminal conspiracy, cheating, and misconduct against the company and its officials.
The Delhi High Court will now examine the Bank’s final decision after hearing Ambani, with the matter scheduled for further consideration on February 27.
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