Shares of Anil Ambani’s Reliance Power rose by ₹0.08, or 0.24%, to ₹33.49 today, reflecting modest investor optimism amid the latest legal developments. The Delhi High Court on Monday raised serious concerns over 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 linked to Reliance Home Finance Limited (RHFL).During proceedings, the Court observed that the notice appeared illogical, noting that RHFL had already undergone insolvency proceedings and a resolution plan had been approved by the lenders as well as the Supreme Court.
Justice Jasmeet Singh noted that Union Bank issued the show cause notice on December 22, 2025, even though the resolution process of RHFL reached finality. The Court questioned how such proceedings could continue once the resolution plan received approval without any challenge to its validity.Despite expressing concern over the timing and reasoning of the notice, the Court declined to stay the proceedings. Justice Singh directed that Jai Anmol Ambani must 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 instructed Union Bank to pass a detailed and reasoned speaking order after granting Ambani a proper hearing. It also directed that the order passed by the Bank must be placed before the High Court on the next date of hearing.
The matter now stands listed for further hearing on February 27. The directions came while hearing a writ petition filed by Jai Anmol Ambani challenging the show cause notice. Earlier, the Delhi High Court quashed Union Bank’s decision to classify the company’s account as fraudulent, noting that the classification occurred without issuing any show cause notice to Ambani. Senior Advocate Rajiv Nayar, appearing for Ambani, argued that the December 22 notice suffered from fundamental flaws. He submitted that once the resolution plan of RHFL received approval, allegations of fraud against the company could not survive. He also pointed out that the notice relied on a forensic audit conducted in 2020, yet the Bank issued the notice nearly five years later, which according to him lacked justification.
On the other hand, counsel for Union Bank contended that the matter remained at a preliminary stage since the Bank only issued a show cause notice. The Bank argued that the Court should not interfere at this stage and that Ambani must first respond to the allegations through the prescribed process. After hearing both sides, the Court clarified that it was not interdicting the proceedings. However, it said that Ambani must receive a fair hearing and that the outcome would remain subject to the High Court’s final decision. The case arises against the backdrop of criminal cases registered by the Central Bureau of Investigation against companies belonging to the Anil Ambani group, involving alleged fraud of nearly Rs 14,853 crore. The CBI alleges that Jai Anmol Ambani caused a wrongful loss of around Rs 228 crore to Union Bank of India. According to the agency, a forensic audit revealed diversion and misuse of loan funds by RHFL, which later slipped into non-performing asset status. Union Bank subsequently lodged a complaint alleging criminal conspiracy, cheating, and misconduct.