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The Delhi High Court on Monday declined to stop a show cause notice issued by Union Bank of India to Jai Anmol Ambani, son of industrialist Anil Ambani, in connection with proceedings to declare the bank account of Reliance Home Finance Limited (RHFL) as fraudulent.
Justice Jasmeet Singh made it clear that the court would not interfere at the stage of a show cause notice and asked the petitioner to first respond to the bank’s notice.
Court Directs Jai Anmol Ambani to Respond Within 10 Days
The court directed Jai Anmol Ambani, who is also a director of RHFL, to submit his reply to the show cause notice within 10 days. He has also been asked to appear for a personal hearing before the bank on January 30.
The judge clarified that any decision taken by Union Bank of India after hearing the petitioner would be subject to further orders passed by the High Court in the present case.
Bank Asked to Pass a “Speaking Order”
Justice Jasmeet Singh instructed Union Bank of India to pass a “speaking order,” meaning a detailed and reasoned order that clearly explains the basis of its decision. The court directed the bank to place this order before it on the next date of hearing. The writ petition filed by Jai Anmol Ambani will remain pending while the bank completes its process.
Court Observations on Show Cause Notice
During the hearing, the court observed that a show cause notice is part of a legal process and should not be blocked at the initial stage. The judge told the petitioner to raise all his objections in his reply to the bank. The court assured that the bank would be required to address all the points raised by Jai Anmol Ambani in its final order. The High Court will examine the matter after the bank’s decision is placed before it.
The High Court has issued notice on the petition and listed the matter for further consideration on February 27.
Arguments Raised by Jai Anmol Ambani
Senior counsel appearing for Jai Anmol Ambani argued that the show cause notice issued on December 22, 2025, was “inherently flawed.”
He submitted that the resolution plan for Reliance Home Finance Limited had already been approved by all lending banks as well as by the Supreme Court. According to him, once a resolution plan is approved, allegations of fraud against the company cannot be sustained.
The counsel also argued that Union Bank of India had all the relevant information since 2020. Issuing a show cause notice after a delay of nearly five years, he said, was contrary to law and principles of fairness.
Union Bank of India’s Stand
Counsel for Union Bank of India opposed the petition and argued that the High Court has limited jurisdiction at the stage of issuance of a show cause notice. He submitted that the bank should be allowed to complete its internal process without court interference.
Court Questions Bank on Timing of Notice
Justice Jasmeet Singh questioned the bank’s counsel on how a show cause notice alleging fraud was issued after the resolution plan under insolvency law had already been approved. The judge observed that the objections raised by the petitioner must be properly examined by the bank while deciding the matter.
Background: Earlier Notice Set Aside by High Court
The present notice was issued after the Delhi High Court had earlier set aside a previous show cause notice issued to Jai Anmol Ambani by Union Bank of India. On December 19 last year, the court granted relief to the petitioner after finding that no valid show cause notice had been served on him. The earlier notice had been sent to an address that RHFL had vacated in 2020.
However, the court had made it clear that its order would not prevent the bank from issuing a fresh notice and continuing the proceedings as per law. Following this, Union Bank of India issued a fresh show cause notice on December 22, 2025.
CBI Case Against Jai Anmol Ambani and RHFL
Separately, the Central Bureau of Investigation (CBI) has registered a case against Jai Anmol Ambani and Reliance Home Finance Limited for alleged cheating of Union Bank of India, formerly known as Andhra Bank. The case relates to an alleged loss of nearly ₹228 crore to the public sector bank.
Allegations in the CBI Case
According to the complaint filed by the bank, RHFL, along with Jai Anmol Ambani and another director, Ravindra Sharad Sudhakar, had availed credit facilities of around ₹450 crore from the bank’s Supply Chain Finance branch in Mumbai for business purposes. The company allegedly failed to repay the instalments, following which the loan account was classified as a non-performing asset (NPA) on September 30, 2019.
