In a relief for Anil Ambani's Reliance Communications (RCom) and Reliance Telecom Limited (RTL), the Delhi High Court has stopped banks from declaring their accounts as "fraudulent". Asking Union Bank of India (UBI) and Indian Overseas Bank (IOB) to maintain status quo, the High Court will now hear the petition filed by RCom's former Executive Director Punit Garg on January 13, 2021.


However, banks are free to issue show-cause notices to RCom and RTL, and give them a necessary virtual hearing. Centre and investigating agencies are also free to initiate or continue any probe against the companies. 

On August 27, Delhi High Court had stayed State Bank of India's (SBI) move to invoke Anil Ambani's personal guarantee, which he had given to secure loans for Reliance Communications (RCom) and Reliance Infratel (RITL). Centre, SBI and Insolvency and Bankruptcy Board of India (IBBI) had opposed the stay on IBC process by the High Court, fearing that sale of assets may avert debt recovery by lenders. (reliance communications) 

Anil Ambani's earlier petition in Delhi HC  (reliance communications )had contested legal validity of IBC rules on personal bankruptcy even as SBI initiated IBC process against him to enforce Rs. 1200 cr personal guarantee. Court had restricted Anil Ambani from selling assets till further orders, after which the order was contested in the Supreme Court.

In October this year, the top court transferred the hearing of all cases   (reliance communications)  pertaining to provisions of personal bankruptcy under the Insolvency and Bankruptcy Code (IBC) to itself. Transferring a total of 19 pending cases to itself from various high courts, the apex court's order will determine the fate of total personal guarantees of over Rs. 40,000 crores.