India, Feb. 24 -- In a setback to industrialist Anil Ambani, the Bombay High Court on Monday quashed a single bench interim order that stayed proceedings initiated against him and Reliance Communications Ltd to classify their bank accounts as fraud. A division bench of Chief Justice Shree Chandrashekhar and Justice Gautam Ankhad allowed the appeals filed by three public sector banks and the auditor firm BDO India LLP against the December 2025 interim order passed by a single bench of the HC. The division bench, while quashing the single bench order, termed it "illegal and perverse".

Ambani's counsels sought the HC to stay its order so that they could approach the Supreme Court, but the request was declined. The banks last month challenge...