The Supreme Court criticised the CBI and ED for their “reluctance” in probing the alleged Rs 73,000 crore fraud involving Anil Ambani Group companies. The Court has now ordered a fair, transparent and time-bound investigation and asked agencies to submit fresh status reports.
The Supreme Court of India on Monday expressed serious concern over the slow progress and “reluctance” shown by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in investigating the alleged large-scale banking fraud involving companies of the Anil Dhirubhai Ambani Group (ADAG). The Court directed the agencies to carry out a “fair, dispassionate, transparent, and time-bound” investigation into the matter.
A bench consisting of Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi was hearing a Public Interest Litigation filed by former bureaucrat E A S Sarma. The petition seeks a court-monitored investigation into alleged loan frauds involving ADAG companies led by businessman Anil Ambani. The Court also directed all financial institutions to fully cooperate with the Enforcement Directorate in the investigation process.
During the hearing, Solicitor General Tushar Mehta, appearing for the CBI and ED, informed the Court that a Special Investigation Team (SIT) had already been formed following an earlier court order. The SIT includes senior ED officers and financial experts from the banking sector. He also informed the Court that the probe agencies have attached assets worth around Rs 15,000 crore so far and have arrested four individuals, including some senior officials.
However, senior advocate Prashant Bhushan, appearing for the petitioner, referred to a SEBI report and argued that the report pointed to a planned scheme to siphon off funds, yet the CBI had not made arrests in the matter. In response, the Solicitor General said,
“Arrests have been made. We cannot make random arrests,”.
The Court then made it clear that while it cannot direct the agencies on whom to arrest, it was not satisfied with the pace and seriousness of the investigation.
The Chief Justice observed,
“We cannot direct (them) whom to arrest; but the investigating agencies, the way they have shown reluctance, is not acceptable. They should say in a time-bound manner as to what has been found. Your investigation should reveal what has been done and must inspire confidence not only in us, but everybody,”.
The Court examined the status reports submitted by the agencies and noted that the CBI is currently investigating seven FIRs, while the ED is investigating eight FIRs related to the matter. The Court also noted a shocking fact that a loan of more than Rs 3,000 crore was allegedly settled by paying only Rs 26 crore. The bench further observed that the total estimated fraud amount in the case is around Rs 73,000 crore.
Emphasising the need for a proper investigation, the Court said,
“The investigating agencies must join hands and find out the issue. We impress upon the CBI and the ED that the probe be completed most dispassionately and independently so that it is taken to a logical conclusion in a time-bound manner.”
The Solicitor General assured the Court that the agencies would conduct a thorough investigation and stated that no effort would be spared in uncovering the truth. The Court recorded his assurance and noted that the ED had sought detailed information from financial institutions in its second status report. The Court then passed an order allowing the prayer made in the petition and directed the investigation to continue.
Senior advocate Mukul Rohatgi, appearing for Anil Ambani, told the Court that because the PIL is pending, banks are not willing to enter into settlement discussions with his client. He told the Court, “Due to the pendency of the case, they are hesitant,”. The Court responded that it had not stopped anyone from holding settlement discussions.
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The Court has now asked the probe agencies to file fresh status reports and has listed the matter for further hearing after four weeks. Earlier, on February 4, the Court had already expressed displeasure over the delay in the investigation. Anil Ambani had also assured the Court that he would not leave the country without prior permission, after the petitioner raised concerns that he might leave India.
The Enforcement Directorate has alleged loan defaults of Rs 7,500 crore in Reliance Home Finance and Rs 8,200 crore in Reliance Commercial Finance, stating that there was a “large-scale diversion of public funds”. In the case of Reliance Power, the ED informed the Court that it is investigating the submission of fake bank guarantees to the Solar Energy Corporation of India, which allegedly caused a loss of more than Rs 105 crore.
Prashant Bhushan also told the Court that Reliance Communications, which had debts of around Rs 47,000 crore, was sold for only Rs 430 crore, which is about 1 per cent of its value, to a company belonging to Anil Ambani’s brother. Taking note of this, the Chief Justice made a strong remark, saying,
“The Insolvency and Bankruptcy Code is being misused like anything,”.
A senior lawyer appearing for the ADAG group told the Court that two group companies, Reliance Power and Reliance Infrastructure, had already repaid loans worth Rs 20,000 crore.
Earlier, on January 23, the Supreme Court had directed the CBI and ED to submit their status reports in sealed cover regarding the ongoing investigation into the alleged banking and corporate fraud. It was also argued before the Court that although the fraud allegedly took place between 2007 and 2008, the FIR in the case was registered only in 2025, which shows a significant delay in the investigation process.
The PIL has alleged that there was systematic diversion of public funds, manipulation of financial statements, and possible involvement of institutions across multiple companies of the Anil Ambani-led ADAG group.
The petition also stated that the FIR registered by the CBI and the ED proceedings cover only a small part of the overall fraud and requested the Court to ensure a thorough, impartial, and time-bound investigation through a Special Investigation Team.
The petition further stated that between 2013 and 2017, Reliance Communications, Reliance Infratel, and Reliance Telecom borrowed Rs 31,580 crore from a consortium of banks led by the State Bank of India, which is now under scrutiny as part of the alleged banking fraud investigation.
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