The Supreme Court on Thursday deferred to May 8 the hearing of a public interest litigation (PIL) alleging large-scale banking fraud involving companies of the Anil Dhirubhai Ambani Group (ADAG). The petition has raised concerns over alleged loan defaults and diversion of funds exceeding Rs 40,000 crore, reported PTI.
A bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi adjourned the matter after taking note of fresh status reports submitted by central probe agencies.
CBI and ED submit status reports; court flags need for transparency
Appearing for the Central Bureau of Investigation and the Enforcement Directorate, Solicitor General Tushar Mehta informed the court that both agencies had filed updated reports in compliance with earlier directions.
During the hearing, advocate Prashant Bhushan, representing the petitioner, alleged that despite identifying key individuals in the case, no significant action had been taken so far.
The bench reiterated that the purpose of judicial oversight is to ensure a fair, transparent, and time-bound investigation into the allegations.
Kapil Sibal seeks opportunity to present defence
Senior advocate Kapil Sibal, appearing for industrialist Anil Ambani, requested the court to grant him time to present arguments and place additional facts on record.
The bench indicated that it would hear all parties before taking cognisance of the status reports, ensuring that due process is followed.
Probe agencies under scrutiny for pace of investigation
The court had earlier expressed concern over what it described as a lack of urgency in the investigation by the Central Bureau of Investigation and the Enforcement Directorate.
It directed both agencies to carry out a “fair, dispassionate, transparent and time-bound” probe. The court also asked financial institutions to fully cooperate with investigators and permitted agencies to approach it if they encounter non-cooperation from any entity.
SIT formed; assets attached and arrests made
The Solicitor General informed the court that a Special Investigation Team (SIT) has been constituted, comprising senior ED officials and financial experts. The agencies have so far attached assets worth approximately Rs 15,000 crore and arrested four individuals, including senior officials.
The court noted that multiple FIRs are currently under investigation – seven by the CBI and eight by the ED – indicating the scale and complexity of the case.
Allegations point to large-scale financial irregularities
According to submissions before the court, the total alleged fraud amount could be as high as Rs 73,000 crore. The bench also referred to instances where substantial loan amounts were reportedly settled for significantly lower sums.
The Enforcement Directorate has alleged defaults of thousands of crores in entities such as Reliance Home Finance and Reliance Commercial Finance, citing large-scale diversion of public funds.
Additionally, investigations are underway into allegations involving forged bank guarantees submitted to a government-linked entity, resulting in financial losses.
PIL seeks court-monitored probe into alleged systemic fraud
The PIL, filed by former bureaucrat E A S Sarma, has called for a court-monitored investigation into what it describes as systemic financial misconduct involving multiple ADAG entities.
It alleges diversion of public funds, manipulation of financial statements, and institutional lapses over several years. The petition also argues that existing investigations cover only a limited portion of the alleged wrongdoing.
Court stresses need for coordinated and time-bound investigation
The bench emphasised that investigative agencies must work in coordination to uncover the full extent of the case. It underscored the importance of completing the probe independently and within a defined timeframe.
Anil Ambani has assured the court that he will not leave the country without prior permission, addressing concerns raised by the petitioner.
The matter is now scheduled for further hearing on May 8, when the court is expected to review the status reports and hear detailed arguments from all parties involved.
(With inputs from PTI)