Supreme Court directs ED and CBI to fast-track probes into Reliance Group firms over alleged Rs.40,000 crore loan defaults and fund diversion. ED forms SIT, led by additional director, to investigate ADAG and linked entities under money laundering laws.
NEW DELHI: The Enforcement Directorate (ED) has set up a Special Investigation Team (SIT) to look into the alleged banking and corporate fraud worth Rs.40,000 crore involving the Anil Dhirubhai Ambani Group (ADAG) and its associated entities, official sources said on Monday.
The sources added,
“The SIT is led by an additional director-rank officer in the headquarters investigation unit (HIU) of the federal probe agency and comprises about half a dozen other investigators,”
The Supreme Court has instructed theEnforcement Directorate (ED) and the Central Bureau of Investigation (CBI) to expedite their investigations into various Reliance Group companies.
This directive came as the Court assessed allegations involving significant loan defaults and fund diversion related to Reliance Commercial Finance (RCFL), Reliance Home Finance (RHFL), Reliance Communications (RCOM), and Reliance Power (RPOWER).
During the proceedings, the ED informed the Court that it is managing multiple cases filed under the Prevention of Money Laundering Act. The agency noted the scale and complexity of the issues, pointing out that RHFL had defaults involving 33 lenders, with the unpaid amounts classified as “proceeds of crime.”
RCFL has been flagged for substantial defaults with 21 lenders, while RCOM’s dues reportedly amount to tens of thousands of crores. A former director of RCOM is currently in custody.
Regarding RPOWER, the ED revealed allegations of forged bank guarantees related to a specific project, which have resulted in several arrests.
The ED reported conducting searches at 46 locations, issuing 13 provisional attachment orders, and seizing 204 properties valued at over Rs 12,000 crore. However, the Court expressed dissatisfaction with the current pace and methods of the investigations. It critiqued the CBI’s approach of consolidating complaints from various banks into a single FIR, stating that this may not comply with procedural law.
The Court recommended that the ED consider establishing a Special Investigation Team composed of senior officers and forensic experts to scrutinize the relevant financial transactions. It also urged the CBI to investigate potential collusion between bank officials and company management.
The Court dismissed the reliance on Section 17A of the Prevention of Corruption Act as “misconceived” in this scenario, thus removing possible obstacles for the agencies.
The Court made it clear that the ED and CBI must conduct their investigations swiftly, independently, fairly, and without bias, while also addressing concerns about potential attempts to evade scrutiny.
To alleviate worries that key individuals might leave the country, the respondent’s counsel assured the Court that Anil Ambani would not travel abroad without prior judicial permission. The Solicitor General also confirmed that preventive measures would be implemented to ensure the investigation proceeds without obstruction.
The ED and CBI have been tasked with submitting detailed status reports within four weeks, with the matter scheduled for the next hearing on March 10.
Factual Background of the Case:
The PIL alleges that several Reliance Group companies, including Reliance Communications, Reliance Capital Financial Services Ltd (RCFL), and Reliance Home Finance Ltd (RHFL), obtained massive loans from public and private banks between 2017 and 2019.
According to investigative agencies:
- RHFL borrowed Rs 7,523.46 crore from 33 lenders
- RCFL borrowed Rs 6,202.56 crore from 22 lenders
- Reliance Communications has outstanding dues of Rs 40,185.55 crore
- Total alleged loss to public money: over Rs 10,552 crore
- Overall group dues: nearly Rs 1.78 lakh crore
In insolvency proceedings, many of these companies were sold at steep discounts, raising concerns over misuse of the Insolvency and Bankruptcy Code (IBC). For instance, Reliance Communications, with dues of nearly Rs 47,000 crore, was sold for only Rs 455 crore.
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The petition alleges that funds were siphoned to tax havens and shell entities, and that bank officials may have colluded in the process.
Towards the end of 2025 and in the early months of 2026, the Supreme Court issued notices to the Union government, the CBI, the Enforcement Directorate, Anil Ambani, and the Anil Dhirubhai Ambani Group in relation to the PIL, seeking comprehensive replies and updates on the progress of investigations.
The Court directed both the CBI and the ED to place detailed status reports on record regarding their probes into the alleged financial irregularities. It also granted Anil Ambani and the ADAG an opportunity to present their responses to the petition within the stipulated time frame.
Earlier Court Order:
Earlier, the Supreme Court directed the Enforcement Directorate (ED) to establish a Special Investigation Team (SIT) consisting of senior officials to investigate allegations of extensive bank fraud involving Reliance Communications (RCOM), its associated entities, and Anil Ambani. The court heard a Public Interest Litigation (PIL) filed by former bureaucrat EAS Sarma and expressed concern over the unexplained delay in the probe, especially on the part of the ED.
The directive came from a Bench comprising Chief Justice of India (CJI) Surya Kant and Justices Joymalya Bagchi and Vipul Pancholi.
The Court remarked,
“The ED is well advised to constitute a SIT comprising senior officers and take all the measures so that the ongoing probe is taken to a logical conclusion,”
The Court also noted the assurance given by Senior Advocate Mukul Rohatgi that the concerned respondent would not leave the country without prior permission. Stressing the gravity of the alleged misuse of public funds, the Supreme Court directed both the CBI and the ED to speed up their investigations.
CASE TITLE: EAS Sarma v. Union of India