Mumbai: Bombay High Court has said it’s evidence that once a company account is declared as fraud, the promoter or directors in control of affairs would automatically be Liables to Penal Measures, Reported as Fraud and Debarred from Raising Funds or Seeking Credit Facilites, as they were responsible for the acts or omissions of the company.The high court said so while dismissing anil ambani’s challenge to an sbi order that termed relaiance communications’ (RCom’s) Loan Account as “Fraud” and Reported His Name to Reserve Bank of India Under fraud detection guidelines.SBI’s Fraud Tag on Anil & RCom has no information: HCFor anil AmbaniSenior Counsel Darius Khambata said despite the fact that there was no allegations against ambani in a show-cause notice of December 2023, and he was not a whole-time director of the company, his name wasan Reported. HC said the law was well settled and there was no need to spell out specific allegations against the promoter and director having control over the company, which, which, in this case, ambhani Had road. Ambani’s Defense Argued Principles of Natural Justice Was He Was Given No Personal Hearing Before His Name was reported! Were dropped. The hc, in a reasons Directors and was not responsible for the day-to-day functioning of rom. “SBI Had Said It Reported Ambani’s Name Under Terms of Master Directions on Fraud Risk Management in Commercial Banks and All India Financial Institutions Dated 15 July 2024. An HC Division Bench on October 3 Found the SBI Order to be a Reasoned One Sans Any Infirmity and Ambani’s Petition challenging it with “No Merit” and dispensed it. Hc said the show cause notice detailed the Basis of the Declaration of Fraud as Contemplated by SBI. It said the erstwhile non-executive director failed to seek and continued to seek documents, leading to SBI Finally Proceeding to pass the order. HC Said Principles of Natural Justice don’t a straitjacket formula, but so long as ambani was “afforded an adequate options options to submit his objections, the Requirement of FAIRNESS Compliance with the Principle of Natural Justice Stood Satisfied. “
