A PIL filed by former government secretary EAS Sarma urges the Supreme Court to monitor a full investigation into alleged Rs 31,580 crore bank fraud by RCOM and Anil Ambani. The plea alleges large-scale fund diversion, fake accounts, shell companies and institutional complicity.
New Delhi: A public interest litigation (PIL) has been filed before the Supreme Court asking for a court-monitored investigation into what the petitioner calls a massive banking fraud involving Reliance Communications (RCOM), its group companies and its former promoter Anil Ambani.
The PIL alleges that there has been a large-scale diversion of bank funds, manipulation of financial statements, misuse of shell companies and serious failure on the part of regulatory authorities.
ALSO READ: Canara Bank Withdraws ‘Fraud’ Tag on Anil Ambani’s Loan, Tells Bombay HC
The petition has been filed by EAS Sarma, a former Secretary to the Government of India. He states that although the Central Bureau of Investigation (CBI) registered an FIR on August 21, 2025, and the Enforcement Directorate (ED) also started related proceedings, these investigations are covering only a very small portion of the wrongdoing.
According to him, neither the CBI nor the ED is examining the role of bank officials, auditors or regulators, even though the forensic audits and independent reports have pointed to widespread fraud.
The petition also highlights that the Bombay High Court has already accepted findings showing systematic fraud and diversion of funds in the matter.
As per the PIL, RCOM and its subsidiaries—Reliance Infratel and Reliance Telecom—received loans worth ₹31,580 crore between 2013 and 2017 from a consortium of banks led by the State Bank of India (SBI).
A forensic audit commissioned by the SBI allegedly found that substantial amounts were diverted for purposes completely unrelated to the business.
These included repayment of loans by other group entities, transfers to related parties, investments in mutual funds and fixed deposits that were immediately liquidated, and a complex cycle of transactions aimed at concealing the evergreening of loans.
The audit also flagged transactions recorded from bank accounts that were officially closed, raising the possibility that financial statements were fabricated.
The PIL says that several shell companies and suspicious corporate structures—such as Netizen Engineering and Kunj Bihari Developers—were allegedly used to siphon off and launder loan funds.
It also mentions that some subsidiaries were used to write off massive liabilities through sham preference-share arrangements, causing losses of over Rs 1,800 crore.
According to the petitioner, these findings show a deliberate and organised attempt to hide losses, divert public money and manipulate financial reporting.
A major concern raised in the PIL is the delay by SBI in acting on the forensic audit report. SBI received the report in October 2020 but waited nearly five years, until August 2025, to file a complaint. The petitioner argues that this delay creates a prima facie impression of “institutional complicity.”
Since officers of nationalised banks are treated as public servants under the Prevention of Corruption Act, the petition insists that their role must also be examined.
The petition refers to findings from other audits and investigations that involved different companies of the Anil Ambani group.
ALSO READ: Bombay High Court Dismisses Anil Ambani’s Plea Against SBI’s ‘Fraud’ Loan Classification
For instance, it mentions that Reliance Capital allegedly gave about Rs 16,000 crore in inter-corporate deposits to subsidiaries with negative net worth and also reduced the value of securities worth over Rs 4,000 crore without proper justification.
In another investigation, thousands of crores were allegedly diverted by home finance subsidiaries to companies linked to the promoters. According to the petitioner, these incidents show a repeated pattern of financial misconduct across multiple companies.
The PIL also talks about large-scale diversion of funds outside India. It alleges that tens of thousands of crores were routed through shell companies, special-purpose vehicles and entities registered in Mauritius, Cyprus and the British Virgin Islands.
Many of these companies were renamed several times, re-registered in different countries and later merged into promoter-controlled firms to hide the money trail.
The petition claims that such transactions may have violated the Foreign Exchange Management Act (FEMA) and the Prevention of Money Laundering Act (PMLA).
The petitioner argues that the current CBI and ED investigations are incomplete and do not address the main issues, such as fabrication of accounts, forged documents, fake or non-existent bank accounts, operation of shell companies, cross-border transactions and layered corporate structures.
It is also argued that without examining the role of bank officials, auditors, regulators and government authorities, the investigation violates Article 21 of the Constitution, which guarantees the right to a fair and complete investigation.
Therefore, the PIL requests the Supreme Court to monitor a comprehensive investigation that covers all forensic audit findings, linked insolvency proceedings and publicly available investigative material.
It asks the Court to issue directions to examine offences under multiple laws, including the Indian Penal Code, Prevention of Corruption Act, PMLA, FEMA, Companies Act, SEBI Act, RBI guidelines and the Insolvency and Bankruptcy Code.
The petitioner says that only judicial oversight can ensure that such a large-scale matter involving public money is properly investigated and that all individuals responsible are held accountable.
Case Title:
EAS Sarma v. Union of India
Read More Reports On Anil Ambani
