SC questions CBI, ED ‘reluctance’ in probing Anil Ambani-led firms

The Supreme Court on Monday expressed displeasure over the “reluctance” shown by the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in probing the alleged large-scale banking fraud involving the Anil Dhirubhai Ambani Group (ADAG) and its firms, directing them to carry out a “fair, dispassionate, transparent, and time-bound” investigation.

A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi took note of submissions by solicitor-general Tushar Mehta, appearing for the CBI and ED, and directed financial institutions to “render full cooperation to the ED”.

The court was hearing a PIL filed by former bureaucrat E.A.S. Sarma seeking a court-monitored investigation into alleged loan frauds exceeding Rs 40,000 crore by firms of ADAG, led by Anil Ambani. The bench allowed the probe agencies to approach the court if government bodies fail to extend cooperation.

At the outset, Mehta informed the bench that a special investigation team (SIT), formed under an earlier order, comprises senior ED officers and financial experts from the banking sector. He said assets worth Rs 15,000 crore have been attached so far and four persons, including senior officials, have been arrested.

Appearing for the petitioner, advocate Prashant Bhushan referred to a Securities and Exchange Board of India (SEBI) report and argued that despite indications of a scheme to siphon off funds, the CBI had not made arrests. “Arrests have been made. We cannot make random arrests,” the solicitor-general said.

“We cannot direct whom to arrest; but the investigating agencies, the way they have shown reluctance, is not acceptable. They should say in a time-bound manner as to what has been found. Your investigation should reveal what has been done and must inspire confidence not only in us, but everybody,” the bench observed.

The court noted from status reports that the CBI and ED are probing seven and eight FIRs respectively. It also observed that a loan amount of more than Rs 3,000 crore had apparently been settled by paying Rs 26 crore, while the total alleged fraud is estimated at around Rs 73,000 crore.

Investigators have cited alleged defaults of about Rs 7,500 crore in Reliance Home Finance and roughly Rs 8,200 crore in Reliance Commercial Finance, with the ED alleging “large-scale diversion of public funds”. The agency is also examining allegations relating to forged bank guarantees submitted to the Solar Energy Corporation of India in connection with Reliance Power, involving an alleged loss of more than Rs 105 crore.

The PIL also referred to borrowings of Rs 31,580 crore by Reliance Communications, Reliance Infratel and Reliance Telecom from a consortium of banks led by the State Bank of India between 2013 and 2017, and raised concerns regarding subsequent insolvency proceedings and asset sales.

Bhushan submitted that Reliance Communications, despite debts of about Rs 47,000 crore, was sold for around Rs 430 crore, roughly 1 per cent of its value, to a company belonging to Anil Ambani’s brother, prompting the bench to remark that “the Insolvency and Bankruptcy Code is being misused like anything”.

“The investigating agencies must join hands and find out the issue… so that it is taken to a logical conclusion in a time-bound manner,” the bench said, recording the solicitor-general’s assurance that no stone would be left unturned.

Senior advocate Mukul Rohatgi, appearing for Anil Ambani, argued that the pendency of the PIL had made lending banks reluctant to engage in settlement discussions. The court responded that it had not restrained any such consultations.

The bench sought fresh status reports from the probe agencies and posted the matter for further hearing after four weeks.

Earlier, the court had voiced concern over “unexplained delay” in the investigations. Ambani had assured the court he would not leave the country without prior permission.

The ED has 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”. It is also examining allegations of forged bank guarantees submitted to the Solar Energy Corporation of India, causing a loss of over Rs 105 crore.

Bhushan further submitted that Reliance Communications, despite debts of Rs 47,000 crore, was sold for about Rs 430 crore, roughly 1 per cent of its value, to a company belonging to Ambani’s brother. “The Insolvency and Bankruptcy Code is being misused like anything,” the bench remarked.

A lawyer for ADAG told the court that Reliance Power and Reliance Infrastructure had repaid Rs 20,000 crore.

The PIL alleges systematic diversion of public funds, fabrication of financial statements and institutional complicity across multiple ADAG entities, adding that the FIR registered by the CBI addresses only a small portion of the alleged fraud dating back to 2007-08.

The probe against Ambani in India coincides with the release of documents by the US Justice Department this year as part of the 'Epstein files', showing Ambani had been in contact with late convicted sex offender Jeffrey Epstein between 2017 and 2019, discussing business opportunities and potential introductions to influential figures in the United States.

Reports based on the documents said Ambani sought Epstein’s help in securing access to members of US President Donald Trump's administration, including Trump's son-in-law Jared Kushner and former advisor Steve Bannon, in connection with India–US engagement and defence cooperation. The two men also appeared to discuss liaisons with women that Epstein would help set up for Ambani.

With PTI inputs