Mumbai: In a significant ruling with wide implications for corporate accountability, the Bombay High Court has held that once a company’s loan account is classified as “fraud,” its promoters and directors in control of the company are automatically liable to penal measures.

The observation came while the court upheld the State Bank of India’s (SBI) decision to declare the account of Reliance Communications (RCom), a firm promoted by industrialist Anil Ambani, as “fraudulent”.

Petition Dismissed by HC

A bench of Justices Revati Mohite-Dere and Neela Gokhale, in its October 3 order (made available on Tuesday), dismissed Ambani’s plea challenging SBI’s June 2025 order declaring RCom’s account as “fraud”. “There is no merit in the petition. Petition is dismissed,” the bench said.

Promoter

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