The Supreme Court on Tuesday sought responses from the Centre, the CBI, the Enforcement Directorate, Anil Ambani and others on a public interest litigation that seeks a court-monitored probe into alleged large-scale banking and corporate fraud involving Reliance Communications (RCom), its group companies and their promoter.
A bench headed by Chief Justice B R Gavai, sitting with Justice K Vinod Chandran, issued notices after hearing senior advocate Prashant Bhushan, who appeared for petitioner and former Union secretary E A S Sarma. The bench asked all respondents to file their replies within three weeks and listed the matter for further hearing thereafter.
Bhushan told the court that probe agencies were failing to investigate the alleged involvement of banks and their officials in what he described as a “massive banking fraud.” He urged the court to direct the CBI and the ED to place on record status reports specifically addressing the role of banks, their executives and associated regulatory failures.
“Issue notice… returnable in three weeks. Let them file their replies,” the Chief Justice said while passing the order.
The PIL alleges systematic diversion of public funds, fabrication of financial statements and institutional complicity across multiple companies of the Anil Ambani-led Reliance ADA Group. It contends that despite extensive forensic audits pointing to serious irregularities, investigative agencies have restricted their inquiry to a narrow set of transactions.
According to the petition, the FIR registered by the CBI on August 21 — along with related enforcement action initiated by the ED — addresses “only a small segment” of the alleged wrongdoing. Sarma argues that the inaction on examining bank officials, auditors and regulators amounts to a “critical failure” in uncovering the full extent of the alleged fraud.
The plea also references a Bombay High Court decision that, according to the petitioner, has already judicially recognised findings of systematic diversion of funds within the group.
The matter will now return to the Supreme Court after three weeks for the respondents’ replies.
