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

Expressing displeasure over what it termed an “unexplained delay” in investigations, the Supreme Court of India on Wednesday directed the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) to carry out a “fair, prompt and dispassionate” probe into alleged large-scale banking and corporate fraud involving the Anil Dhirubhai Ambani Group (ADAG), its chairman Anil Ambani, and group companies.

A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M. Pancholi sought fresh status reports from both agencies within four weeks and directed the ED to constitute a Special Investigation Team (SIT) of senior officers to take the probe to its “logical conclusion” expeditiously.

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

The court was hearing a public interest litigation (PIL) filed by former bureaucrat E. A. S. Sarma, alleging massive diversion of public funds, fabrication of financial statements and institutional complicity across multiple ADAG entities.

During the hearing, Sarma expressed apprehension that Ambani could leave the country. Representing Ambani, senior advocate Mukul Rohatgi assured the court that his client would not travel abroad without prior permission of the apex court.

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

The court took strong exception to the CBI’s handling of the case, noting that despite receiving complaints from several banks, the agency had registered only one FIR in 2025, based on a complaint from the State Bank of India.

“The approach adopted by the CBI does not seem to be in conformity with procedural law,” the Chief Justice observed, adding that each bank’s complaint represented a separate transaction and warranted an independent FIR.

The bench also directed the CBI to widen the scope of its probe to examine possible “collusion” of bank officials in the alleged fraud.

Referring to the ED’s affidavit, the bench noted that loans availed by Reliance Communications exceeded Rs 40,000 crore and that the agency had 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 has alleged defaults of around Rs 7,500 crore in Reliance Home Finance and Rs 8,200 crore in Reliance Commercial Finance, citing large-scale diversion of public funds. In the case of Reliance Power, the agency is probing alleged submission of forged bank guarantees to the Solar Energy Corporation of India, causing losses of over Rs 105 crore.

Advocate Prashant Bhushan, appearing for the petitioner, pointed out that Reliance Communications, despite liabilities of about Rs 47,000 crore, was sold for Rs 430 crore to an entity linked to Anil Ambani’s brother.

“The Insolvency and Bankruptcy Code is being misused like anything,” the Chief Justice remarked.

Senior advocate Shyam Divan, appearing for ADAG, said two group companies — Reliance Power and Reliance Infrastructure — had already repaid nearly Rs 20,000 crore and denied any siphoning of funds.

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

The court noted that earlier, on 23 January, it had directed the CBI and ED to file sealed-cover status reports and issued fresh notices to Ambani and ADAG, granting them a final opportunity to respond.

The bench granted Ambani and ADAG four weeks to file their replies to the PIL and posted the matter for further hearing thereafter.