Canara Bank has informed the Bombay High Court that it has withdrawn its classification of industrialist Anil Ambani’s loan account as ‘fraudulent’. This decision comes after Ambani’s Reliance Communications, along with its unit, was initially labelled as such due to allegations of misappropriating a Rs 1,050 crore loan, news agency PTI reported. The funds, sanctioned in 2017 for capital expenditure and debt repayment, were alleged to have been misused, resulting in the November 2024 fraud classification. Ambani challenged this move in court, asserting that the bank had bypassed necessary procedures.
The contention revolved around the Bank’s compliance with the Reserve Bank of India’s master circular on fraudulent accounts….