SC irked over delay; asks CBI, ED to conduct fair probe against ADAG firms

New Delhi (PTI): Voicing displeasure over the "unexplained delay" in investigations, the Supreme Court on Wednesday directed the CBI and the ED to conduct a “fair”, “prompt” and “dispassionate probe into alleged massive banking and corporate fraud to the tune of Rs 40,000 crore involving Anil Dhirubhai Ambani Group (ADAG), Anil Ambani and group companies.

Anil Ambani, represented by senior advocate Mukul Rohatgi, assured the top court that he will not leave the country without its prior nod when PIL petitioner and former bureaucrat EAS Sarma apprehended that he may flee.

A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi sought fresh status reports in four weeks from the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) on the progress made in the ongoing investigation against Ambani and ADAG firms.

"Both ED and CBI have already taken time, and we therefore expect that both agencies will act promptly," the bench said and asked the ED to constitute a SIT comprising senior officers to take the probe against ADAG and others to a logical conclusion promptly.

The bench took note of the appearances made by Anil Ambani and ADAG through senior lawyers Rohatgi and Shyam Divan and granted them four weeks time to file responses to the PIL.

The bench criticised the CBI’s procedural approach, noting that the agency had registered only one FIR in 2025 based on a complaint from the State Bank of India (SBI), despite receiving subsequent complaints from various other financial institutions.

“The approach adopted by the CBI does not seem to be in conformity with procedural law,” the CJI said, adding that each bank’s complaint constitutes a separate transaction and warrants an independent FIR.

Furthermore, the bench directed the CBI to expand the scope of its probe to include the potential "collusion" of bank officials.

"Both ED and CBI have already taken time, and we therefore expect that both agencies will act promptly," the bench said.

During the hearing of the PIL of Sarma, advocate Prashant Bhushan urged the court to restrain the ADAG chairman from leaving the country, citing instances of other high-profile defaulters fleeing the country.

Solicitor General Tushar Mehta informed the bench that Look Out Circulars had already been issued against Ambani.

The solicitor general informed the bench that the total amount allegedly siphoned off through various ADAG companies is approximately Rs 40,000 crore.

The bench, referred to the affidavit of the ED, and said the loans of Reliance Communications exceeded Rs 40,000 crore and the probe agency assessed the "proceeds of crime" at over Rs 20,000 crore.

Assets worth Rs 8,078 crore have already been provisionally attached, the ED said.

The ED alleged defaults of Rs 7,500 crore in Reliance Home Finance and Rs 8,200 crore in Reliance Commercial Finance, citing "large-scale diversion of public funds." On Reliance Power, the ED’s report, recorded by the bench, said the agency is investigating the submission of forged bank guarantees to the Solar Energy Corporation of India which caused a loss of over Rs 105 crore.

Bhushan pointed out that Reliance Communications, despite having debts of Rs 47,000 crore, was sold for a mere Rs 430 crore, roughly 1 percent of its value, to a company belonging to Anil Ambani’s brother.

"The Insolvency and Bankruptcy Code is being misused like anything," the CJI said.

Senior advocate Shyam Divan, appearing for ADAG, said that two group companies, Reliance Power and Reliance Infrastructure, had already repaid Rs 20,000 crore.

“There is no question of siphoning. These companies are in the nature of paying back,” Divan said.

Rohatgi added that genuine business defaults should not be criminalised and proposed that the government form a committee to determine the actual dues instead of pursuing criminal prosecution.

Earlier on January 23, the top court asked the CBI and the ED to file status reports in a sealed cover within ten days on their ongoing investigations into alleged massive banking and corporate fraud.

It had also issued fresh notices to Anil Ambani and the ADAG on a PIL seeking a court-monitored probe into the alleged fraud and granted them the last opportunity to appear through counsel.

Earlier, Bhushan alleged that the probe agencies are not investigating the alleged complicity of banks and their officials in the huge banking fraud. Bhushan said the instant case is "probably the largest corporate fraud in India's history".

The FIR was registered in 2025 though the fraud was going on since 2007-08, the lawyer alleged.

The PIL alleged systematic diversion of public funds, fabrication of financial statements and institutional complicity across multiple entities of the Anil Ambani-led Reliance ADAG.

It said the FIR registered by the CBI on August 21, along with the connected ED proceedings, addresses merely a small segment of the alleged fraud.

It also sought a direction to the respondents for the constitution of a special investigation team (SIT) comprising officers from the CBI and the ED to conduct a thorough, impartial and time-bound investigation.

It said between 2013 and 2017, RCOM, Reliance Infratel (RITL) and Reliance Telecom (RTL) borrowed Rs 31,580 crore from a consortium of banks led by the SBI.