The Supreme Court on Thursday refused to interfere with the Bombay High Court’s decision vacating interim protection granted to industrialist Anil Ambani in a fraud classification dispute, while clarifying that the High Court’s observations will not influence the pending suit.

A Bench led by Chief Justice Surya Kant noted that the pleadings did not specifically challenge the forensic report forming the basis of the fraud classification and observed that there was a finding of “diversion of funds.” The Court indicated that questions regarding the validity or methodology of the report could be raised before appropriate forums, including banks or in the ongoing proceedings.

Senior Advocate Kapil Sibal, appearing for Ambani, argued that only a qualified auditor could determine allegations such as siphoning of funds and that reliance on a forensic report by a non-chartered accountant amounted to “civil death” for the borrower. This was supported by Senior Advocate Shyam Divan, who emphasised that fraud classification carries severe civil and criminal consequences and must be based on a legally valid financial audit conducted by a qualified professional.

Opposing the plea, Solicitor General Tushar Mehta defended the credibility of the forensic agency, describing it as internationally recognised, while maintaining that the findings themselves were not under challenge.

Refusing interim relief, the Court observed that it would not substitute the commercial wisdom of banks in such matters, particularly when public funds were involved. At the same time, it permitted the petitioner to pursue remedies in accordance with law, including engaging with banks, as the dispute over fraud classification continues to be adjudicated.