Canara Bank drops ‘fraud’ tag from Reliance Communications loan a/c
MUMBAI: Canara Bank on Thursday informed the Bombay HC that it has withdrawn an order that classified Anil Ambani’s loan account connected to Reliance Communications, which is undergoing insolvency proceedings, as ‘fraudulent’. The HC bench then disposed of a petition filed by Ambani challenging the bank’s Nov 8 order. The bank had classified the loan account as ‘fraud’ for reasons including that a Rs 1,050-crore-loan given in 2017 was routed through a company to pay other liabilities to related parties. On Feb 7, Ambani’s advocate argued the order was communicated to him on Dec 25, after HC on Dec 20 stayed the bank’s similar classification.
