The Supreme Court on Friday directed the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) to submit sealed status reports within ten days on their ongoing probes into alleged large-scale banking and corporate fraud involving the Anil Dhirubhai Ambani Group (ADAG) and its group companies.
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi also issued fresh notices to Anil Ambani and ADAG on a public interest litigation (PIL) seeking a court-monitored investigation into the alleged fraud.
Court Grants Final Opportunity to Respond
The bench noted that Anil Ambani and ADAG had already been served notices in the PIL filed by former Union secretary E A S Sarma, but granted them one final opportunity to appear and file their responses.
The Supreme Court directed the Registrar General of the Bombay High Court to ensure service of notices on Anil Ambani and ADAG and to submit a compliance report.
Sealed Status Reports Ordered
The court asked the CBI and the ED, represented by Solicitor General Tushar Mehta, to place sealed status reports before it within ten days, detailing the progress of their investigations into the alleged fraud.
Allegations Raised by the Petitioner
During the hearing, advocate Prashant Bhushan, appearing for the PIL petitioner, alleged that over ₹1.50 lakh crore in debt of ADAG group companies had been written off and that funds were allegedly siphoned through multiple shell companies.
He described the matter as the “largest bank loan fraud in the country”, claiming that despite widespread media coverage, Anil Ambani and ADAG had not entered an appearance before the court.
The Solicitor General informed the bench that an FIR had been registered following a forensic audit conducted by the State Bank of India (SBI), and stated that the government was not opposing the court’s direction.
Focus on Alleged Institutional Complicity
Bhushan further alleged that probe agencies had not adequately investigated the role of banks and their officials, despite the scale of the alleged fraud. He sought directions requiring the CBI and ED to submit detailed status reports specifically addressing the conduct of banks and public officials.
According to the plea, the alleged fraud had been ongoing since 2007-08, although the FIR was registered only in 2025.
Scope of FIR and Alleged Gaps in Investigation
The PIL claims that the CBI FIR registered on August 21, along with connected ED proceedings, addresses only a limited portion of the alleged wrongdoing.
It alleges systematic diversion of public funds, fabrication of financial statements, and institutional complicity across multiple ADAG entities. The petition contends that despite forensic audits flagging serious irregularities, investigations have not examined the role of bank officials, auditors, or regulators.
Details of Alleged Banking Exposure
The plea states that between 2013 and 2017, companies including Reliance Communications (RCOM), Reliance Infratel (RITL), and Reliance Telecom (RTL) borrowed ₹31,580 crore from a consortium of banks led by SBI.
The SBI-based FIR alleges offences including criminal conspiracy, cheating, criminal breach of trust, and misconduct, involving an alleged loss of ₹2,929.05 crore. The FIR is based on a forensic audit commissioned in 2019, which reportedly flagged suspicious fund flows, loan diversion, fictitious transactions, and alleged use of shell entities.
Reliefs Sought in the PIL
The petition seeks:
- A court-monitored investigation by the CBI and ED
- Constitution of a Special Investigation Team (SIT) comprising officers from both agencies
- Judicial oversight to ensure a fair, comprehensive, and independent probe, including scrutiny of public officials allegedly involved or complicit
The Supreme Court has sought responses and status updates before proceeding further in the matter.
Source: TaxTMI