The decision comes as a setback for Ambani, who had challenged an earlier order of the Bombay High Court permitting lenders to move ahead with the fraud classification.

A bench led by Chief Justice of India Surya Kant stated that the High Court's division bench order would not affect the merits of the civil suit, which remains pending.

The apex court also requested the Bombay High Court to expedite the hearing and disposal of the case.

The court noted that Ambani is free to explore other legal remedies available under the law. It further clarified that it was not expressing any opinion on his submission regarding a possible settlement with the banks.

The Bombay High Court had earlier allowed banks, including Indian Overseas Bank, to proceed with classifying the loan account as fraudulent.

In doing so, the division bench set aside a December 2025 interim relief order passed by a single-judge bench that had temporarily protected Ambani from such classification.

The fraud tag, if finalised, could have significant financial and legal implications, including restrictions on future borrowing and increased scrutiny by regulatory agencies.

In a parallel development, the Enforcement Directorate has intensified its probe into alleged financial irregularities linked to companies associated with the Anil Dhirubhai Ambani Group (ADAG).

The agency recently arrested Amitabh Jhunjhunwala, a former senior executive of the group, in connection with a money laundering case involving entities such as Reliance Home Finance Ltd and Reliance Commercial Finance Ltd.

Another former executive, Amit Bapna, who previously served as CFO and COO of Reliance Capital Ltd, has also been arrested in the same investigation.

The Reliance Group clarified that both individuals had exited the organisation in 2019 and have had no association with the group since then, including its listed entities like Reliance Infrastructure Ltd and Reliance Power Ltd.

The company emphasised that the arrests relate to past roles and not current operations.

Legal experts note that the Supreme Court's refusal to intervene at this stage strengthens the position of banks in proceeding with fraud classification, subject to due process.

At the same time, the pending civil suit in the Bombay High Court will play a crucial role in determining the final outcome of the dispute.

The Supreme Court's decision marks a critical development in the ongoing legal battle involving Anil Ambani. While the fraud classification process moves forward, the final verdict will depend on the expedited proceedings in the Bombay High Court and any further legal steps taken by the businessman.