Summary: Anil D. Ambani challenged actions by Indian Overseas Bank and others based on a detailed financial investigation. The court found problems with the investigation's legitimacy, stopping further actions against Ambani.
On December 24, 2025, the Bombay High Court, under Judge Milind N. Jadhav, delivered an important decision concerning Anil D. Ambani and several banks, including Indian Overseas Bank (IOB), IDBI Bank, and Bank of Baroda. Ambani argued against the fairness of a financial investigation report used to label his companies as dishonest.
Ambani argued that the financial investigation, conducted by BDO LLP and signed by someone who wasn't a certified accountant, was flawed. The investigation was supposed to cover financial activities from 2013 to 2017 but was criticized for not being done by qualified people and for not being complete.
"BDO India is an accounting consulting firm... Our procedures are based on analysis of transactions as presented in the books of account on best effort basis..." - Forensic Audit Report
Audit Validity: The court found that the financial investigation report did not meet the necessary legal requirements, as it was neither conducted nor signed by a certified Chartered Accountant.
Role of BDO LLP: The court noted BDO LLP's earlier work with the banks as a consultant, which affected its independence as an investigator.
Timeline Issues: The investigation was delayed significantly beyond the expected timeline, making it less reliable.
The court granted temporary relief to Ambani, stopping all actions based on the investigation report and related notices. The judgment emphasized following legal audit standards and the principles of fairness.
This ruling highlights the importance of conducting financial investigations within legal frameworks and the need for transparency and fairness in financial investigations. The decision stops the banks from taking further action against Ambani based on the disputed investigation.
The court's decision protects Anil D. Ambani from any actions by the banks based on the disputed financial investigation, emphasizing the need for qualified and fair financial audits.
