The Supreme Court has sought a response from the Central Bureau of Investigation (CBI) on a petition demanding a criminal probe against Indiabulls Housing Finance Limited (IHFL)—now renamed Sammaan Capital Limited—over allegations of sanctioning dubious loans in violation of the Companies Act and misuse of public funds.
A bench comprising Justices Abhay S Oka and Ujjal Bhuyan issued notice to the agency on Tuesday and scheduled the matter for further hearing in July, after the Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI) submitted reports pointing to irregularities by the financial firm.
The case gained momentum after the Enforcement Directorate (ED) filed a detailed status report citing two investigations that exposed serious allegations against IHFL and related entities. According to the ED, a case registered in Maharashtra accused the company of siphoning off approximately ₹300 crore of public money and deceiving investors. The ED report also pointed to alleged fabrication of valuation reports, manipulation of base prices for auctions, and other actions that amounted to criminal conspiracy.
The ED informed the court that while it has concluded its preliminary probe and substantiated many of the allegations, it faced hurdles due to the absence of a predicate offence, which is essential for taking further legal action under the Prevention of Money Laundering Act. The agency said it has shared evidence with the Delhi Police in one case and is preparing to file a formal complaint in another.
The matter reached the Supreme Court after Citizens Whistleblowers Forum, an NGO represented by advocate Neha Rathi, petitioned for CBI intervention following dismissal of its plea by the Delhi High Court. The NGO accused IHFL of disbursing loans to questionable corporate entities that engaged in financial irregularities such as round-tripping and creation of private wealth at the expense of public resources. It further alleged that certain borrower firms shared directors and addresses with IHFL and that loans were granted to companies lacking tangible assets or business operations.
The Delhi High Court had rejected the NGO’s claims in 2019, observing that the allegations were unsupported by concrete evidence and that the documents submitted were publicly available and insufficient to establish financial misconduct. IHFL subsequently sought perjury proceedings against the petitioner, alleging false accusations.
In November 2024, the Supreme Court had agreed to examine the case and had already sought responses from the Union government, Reserve Bank of India, SEBI, and ED.
On Tuesday, the Supreme Court also questioned the ED about the slow pace of its investigation, noting, “The ED normally works very fast.” The agency’s counsel assured the bench that a comprehensive status report on IHFL’s activities was being finalized.
