Bombay HC Stays Fraud Proceedings Against Anil Ambani Over Defective Audit

The Bombay High Court has stayed fraud classification proceedings against Anil Ambani by three banks due to a prima facie defective forensic audit report. The court found the report by BDO LLP was not signed by a qualified chartered accountant, violating RBI Master Directions. This interim relief prevents drastic consequences for Ambani and Reliance Communications.

• Bombay High Court grants interim stay on fraud proceedings against Anil Ambani.
• Stay attributed to 'defective' forensic audit report by BDO LLP.
• Report lacked signature of a duly qualified chartered accountant, violating RBI norms.
• Indian Overseas Bank, IDBI Bank, and Bank of Baroda were the involved lenders.
• Court criticized banks for delay in initiating fraud declaration process.
• The ruling prevents severe consequences like blacklisting and credit denial for Ambani.

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