The Bombay High Court on Wednesday stayed all “fraud” classification proceedings against Anil Ambani and Reliance Communications by a consortium of three banks, citing violations of mandatory Reserve Bank of India rules.

Granting an interim relief to Ambani and his company by staying all present and future action by Indian Overseas Bank, IDBI Bank, and Bank of Baroda, Justice Milind Jadhav said that the banks’ move was based on a legally flawed forensic audit and violated the Reserve Bank of India’s (RBI) mandatory guidelines.