The Supreme Court of India on Monday expressed strong displeasure over what it termed the “reluctance” of the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in probing alleged large-scale banking fraud involving the Anil Dhirubhai Ambani Group (ADAG).
A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi directed the central agencies to conduct a “fair, dispassionate, transparent, and time-bound” investigation into the matter, which is now estimated to involve a staggering ₹73,000 crore.
During the hearing of a Public Interest Litigation (PIL) filed by former bureaucrat E.A.S. Sarma, the bench pulled up the agencies for their perceived lack of vigor. While Solicitor General Tushar Mehta informed the court that a Special Investigation Team (SIT) of ED officers and financial experts has been formed, the court remained unimpressed by the pace of the overall probe.
“The investigating agencies, the way they have shown reluctance, is not acceptable,” Chief Justice Surya Kant observed. “Your investigation should reveal what has been done and must inspire confidence not only in us, but everybody.”
The court noted that the CBI and ED are currently investigating seven and eight FIRs, respectively. However, the bench highlighted startling discrepancies, including a specific instance where a loan amount exceeding ₹3,000 crore was apparently settled for a mere ₹26 crore.
The PIL alleges a systematic diversion of public funds and fabrication of financial statements across multiple ADAG entities. Advocate Prashant Bhushan, representing the petitioner, pointed to a SEBI report detailing a scheme to siphon off money.
Key allegations recorded by the court include:
- Reliance Home & Commercial Finance: The ED alleges defaults of ₹7,500 crore and ₹8,200 crore respectively, citing “large-scale diversion of public funds.”
- Reliance Power: Investigation is underway regarding the submission of forged bank guarantees to the Solar Energy Corporation of India, causing a loss of over ₹105 crore.
- Reliance Communications (RCOM): Bhushan highlighted that RCOM, despite carrying debts of ₹31,580 crore (and total debts of ₹47,000 crore), was sold for just ₹430 crore—roughly 1% of its value—to a company belonging to Anil Ambani’s brother.
On the RCOM sale, Chief Justice Surya Kant remarked, “The Insolvency and Bankruptcy Code is being misused like anything.”
Appearing for the central agencies, Solicitor General Tushar Mehta defended the progress, stating that assets worth ₹15,000 crore have been attached and four persons, including senior officials, have been arrested. “We cannot make random arrests,” Mehta told the bench, while assuring the court that “no stone shall be left unturned to unearth the truth.”
Senior advocate Mukul Rohatgi, representing Anil Ambani, argued that the pending PIL was hindering debt settlement efforts. He claimed that group companies Reliance Power and Reliance Infrastructure had already repaid ₹20,000 crore, but lending banks are now hesitant to engage in dialogue due to the court proceedings. The bench clarified it had not stopped any consultations for settlement.
The Supreme Court has granted the agencies’ prayer to seek full cooperation from all financial institutions and government bodies. The bench warned that the agencies could approach the court directly if any government entity shows reluctance in extending cooperation.
The court has sought fresh status reports from both the CBI and ED and has scheduled the matter for further hearing in four weeks. Anil Ambani had previously assured the court that he would not leave the country without prior permission.
