Mumbai: The Bombay High Court on Wednesday stayed all present and future actions by three banks seeking to declare the accounts of Anil Ambani and his company Reliance Communications Ltd as `fraud’, noting that the provisions of the RBI’s Master Directions were violated in the process. The action was based on a forensic audit report prepared by an external auditor, BDO LLP, noted Justice Milind Jadhav. But this report cannot be relied upon because it had not been signed by a duly qualified chartered accountant (CA) as required under the Reserve Bank of India’s 2024 Master Directions on fraud, the judge said.

If interim relief was not given to Ambani and Reliance Communications, it would cause “grave and irreparable harm / loss”, said the order. “Principles of natural justice are........

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