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SC pulls up CBI, ED over delay in probing alleged bank fraud by Anil Ambani companies
The ED, in an affidavit placed before the court, disclosed that its investigation had so far revealed large-scale defaults by multiple Reliance group entities.
The Supreme Court on Wednesday hauled up the Central Bureau of Investigation (CBI) and the Enforcement Directorate for dragging their feet in probing allegations of large-scale bank fraud involving Reliance Communications and former promoter Anil Ambani, while asking the agencies and the Centre to take all necessary measures to prevent Ambani from leaving the country as the investigation is placed under the court’s watch.
A bench comprising Chief Justice of India Surya Kant and justices Joymalya Bagchi and Vipul M Pancholi expressed serious concern over laxity on the part of the probe agencies, noting that despite the involvement of multiple banks and entities, the CBI had registered only one case.
Questioning the approach adopted by the CBI, the bench observed that different transactions and entities prima facie constituted distinct offences and warranted the registration of separate preliminary enquiries and regular cases. “What is the problem in registering different RCs for distinct offences?” the bench asked, adding that procedural requirements such as sanction could not be allowed to impede an effective investigation.
The court also emphasised that the alleged role of bank officials must be examined. “It is imperative for the CBI to investigate the conduct of bank officials to determine whether loans were released in connivance with the defaulter,” the bench said, rejecting the agency’s submission that the absence of sanction had stalled further action.
During the hearing, petitioner EAS Sarma, represented by advocate Prashant Bhushan, flagged the delay in action despite a forensic audit report having been submitted as far back as 2020. Bhushan, assisted by advocates Pranav Sachdeva and Neha Rathi, pointed out that arrests were made only after the Supreme Court issued notice in the matter. Taking note of these submissions, the bench said it would continue to monitor the investigation and seek periodic status reports from the agencies.
Senior advocate Mukul Rohatgi, appearing for Ambani, submitted that multiple FIRs and ECIRs were already pending and that assets worth over ₹12,000 crore had been attached. He proposed that a committee be constituted to assess the total outstanding dues and explore the possibility of repayment in a staggered manner. However, the bench declined the suggestion, observing that serious economic offences involving allegations of siphoning and forgery could not be condoned merely on an offer to repay.
Solicitor General Tushar Mehta, appearing for the CBI and ED, informed the court that forensic audits had revealed forgery and diversion of funds and that public officials were also under investigation. He assured the bench that the agencies would take all necessary preventive measures to ensure that the investigation was not frustrated.
Concern was also raised over the possibility of Ambani leaving the country. Bhushan urged the court to issue protective directions in view of the scale of the alleged fraud. In response, Rohatgi stated that his client would not travel abroad without the permission of the court -- a submission that was recorded in the order. The Centre assured the bench that all preventive steps would be taken to ensure that the probe is not hampered.
“We would want you to ensure that nothing should happen that might frustrate the proceedings before this court. Take all preventive and other measures. We do not want the investigation to be hampered at any cost,” the court told Mehta.
The ED, in an affidavit placed before the court, disclosed that its investigation had so far revealed large-scale defaults by multiple Reliance group entities.
According to the agency, Reliance Home Finance Ltd (RHFL) defaulted on loans worth ₹7,523.46 crore taken from 33 banks and financial institutions, of which lenders could recover only ₹2,116.28 crore after resolution, leaving net defaults of ₹5,407.18 crore constituting alleged proceeds of crime under the Prevention of Money Laundering Act (PMLA).
Similarly, Reliance Commercial Finance Ltd (RCFL) defaulted on loans of ₹8,226.05 crore taken from 21 lenders, with recoveries of only ₹1,945.48 crore, resulting in alleged proceeds of crime amounting to ₹6,280.57 crore.
In the RCOM case, the ED stated that RCOM and its group companies -- Reliance Telecom Ltd and Reliance Infratel Ltd, had taken loans from 13 foreign banks and institutional investors and 26 Indian banks and financial institutions, with outstanding dues totalling ₹40,185.55 crore, which also form the quantum of alleged proceeds of crime.
The ED informed the court that it has registered three ECIRs so far and recently arrested Punit Narendra Garg, former director of RCOM, who has been remanded to ED custody till February 7. The bench advised the ED to constitute a special investigation team (SIT) of senior officers and pursue the probe to its logical end, while noting the unexplained delay on the agency’s part.
