The Supreme Court on Monday agreed to examine a public interest litigation demanding a court-monitored investigation into what the petitioner describes as a massive banking and corporate fraud involving Reliance Communications (RCOM), its group companies and promoter Anil Ambani.
The matter was mentioned for urgent listing before a bench headed by Chief Justice B.R. Gavai, along with Justices K. Vinod Chandran and N.V. Anjaria, by advocate Prashant Bhushan. “There is bank fraud worth Rs 20,000 crore. We are seeking an independent court-monitored probe. This is about a large corporate group,” Bhushan said.
“We will list it,” the CJI responded.
The petition, filed by former Union secretary E.A.S. Sarma, alleges a wide-ranging pattern of diversion of bank loans, fabrication of financial statements and institutional failures across multiple entities of the Anil Ambani–led Reliance ADA Group.
Sarma contends that the FIR registered by the CBI on August 21, and the associated Enforcement Directorate proceedings, cover only a fraction of the alleged irregularities. He argues that despite extensive forensic audits highlighting red flags, neither agency has scrutinised the involvement of bank officials, auditors or regulators — which the plea calls a “critical failure”.
The PIL also states that findings of “systematic fraud and diversion of funds” have already been judicially recognised in a decision of the Bombay High Court.
According to the petition:
- RCOM and its subsidiaries Reliance Infratel and Reliance Telecom obtained loans worth ₹31,580 crore from a consortium of banks led by SBI between 2013 and 2017.
- A forensic audit commissioned by SBI and received in October 2020 allegedly uncovered “large-scale diversion of funds”, including the use of thousands of crores to repay unrelated loans.
- The audit reportedly pointed to fabricated accounts and manipulated financial statements.
- Several entities — including Netizen Engineering and Kunj Bihari Developers — were flagged as alleged shell companies used to siphon or launder bank funds.
The petition further refers to subsidiaries writing off substantial liabilities through allegedly sham preference-share arrangements, which, according to Sarma, led to losses exceeding ₹1,800 crore. Such patterns, the PIL claims, indicate a “deliberate, structured and systemic effort” to conceal losses and misappropriate public funds.
A key concern raised in the PIL is the nearly five-year gap between SBI receiving the audit report and its eventual complaint in August 2025.
This delay, Sarma argues, shows “prima facie institutional complicity”, especially since officers of nationalised banks are treated as public servants under the Prevention of Corruption Act.
The plea asserts that investigative agencies have still not examined the potential roles of bank officials and regulators despite detailed audit findings and independent reports pointing to what it describes as widespread fraud.
The Supreme Court is expected to list the matter for a detailed hearing in due course.
