Probe ADAG firms diligently, SC asks CBI, ED

The Supreme Court on Monday expressed displeasure over the “reluctance” shown by the CBI and the ED in probing the alleged large-scale banking fraud involving the Anil Dhirubhai Ambani Group and its firms, and directed them to conduct a “fair, dispassionate, transparent, and time-bound” investigation into the matter. A bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi took note of the submissions of Solicitor General Tushar Mehta, appearing for the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED), and directed all concerned financial institutions to “render full cooperation to the ED”.

Hearing a PIL filed by former bureaucrat EAS Sarma seeking a court-monitored investigation into alleged loan frauds exceeding Rs 40,000 crore by Anil Dhirubhai Ambani Group (ADAG) firms led by Anil Ambani, the bench permitted the central probe agencies to approach it in case there is any reluctance on the part of other Government bodies in extending cooperation to them.

SG Mehta informed the bench that an SIT, in pursuance of an earlier order, had been constituted comprising senior ED officers and financial experts from the banking sector. He said the probe agencies, so far, attached assets worth Rs 15,000 crore and also arrested four persons, including a few senior officials. On the other hand, lawyer Prashant Bhushan, appearing for Sarma, referred to a SEBI report and said it has been highlighted that there was a scheme devised to siphon off money and yet the CBI has not made any arrests so far.

“Arrests have been made. We cannot make random arrests,” the Solicitor General said. “We cannot direct them 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 CJI said.

The bench referred to certain facts disclosed in the fresh status reports of the probe agencies and said the CBI and the ED are presently probing seven and eight FIRs, respectively. It also said that a loan amount of more than Rs 3,000 crore has been apparently settled by paying Rs 26 crore. The bench said it is estimated that the total fraud amount is around Rs 73,000 crore.

“The investigating agencies must join hands and find out the issue. We impress upon the CBI and the ED that the probe be completed most dispassionately and independently so that it is taken to a logical conclusion in a time-bound manner. “The Solicitor General assured that no stone shall be left unturned to unearth the truth. The solicitor general has pointed to the second status report by the ED, where details have been sought from financial institutions. We allow the prayer in its entirety,” the bench ordered. 

Senior advocate Mukul Rohatgi, appearing for Anil Ambani, said that due to the pendency of the PIL, the lending banks are not willing to have a dialogue with him to settle the dues. “Due to the pendency of the case, they are hesitant,” Rohatgi said. The bench said it has not stopped anyone from having any consultations. The bench sought fresh status reports from the probe agencies and fixed the PIL for further hearing after four weeks.

On February 4, the bench had voiced displeasure over the “unexplained delay” in investigations.

Ambani had assured the top court that he would not leave the country without its prior nod after the petitioner apprehended that he may flee.

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”. On Reliance Power, the ED’s report, which has been 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 more than 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 per cent 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. A senior lawyer, appearing for ADAG, said that two group companies, Reliance Power and Reliance Infrastructure, had already repaid Rs 20,000 crore.

On January 23, the top court had asked the CBI and the ED to file status reports in a sealed cover within 10 days on their ongoing investigations into alleged massive banking and corporate fraud. The FIR was registered in 2025, though the fraud had been going on since 2007-08. It said the FIR registered by the CBI, 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 and Reliance Telecom borrowed Rs 31,580 crore from a consortium of banks led by the State Bank of India.