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The Supreme Court today directed the CBI to probe allegations of financial irregularities levelled against the promotors of Indiabulls Housing Finance Limited (now Sammaan Capital Limited).

A bench of CJI Surya Kant, Justice Joymalya Bagchi and Justice V Mohana passed the order, calling on the CBI conduct the investigation notwithstanding the report of Delhi Police's Economic Offenses Wing qua 5 out of 6 allegations in the ED's prosecution complaint.

The order was passed in a PIL alleging serious financial misconduct, including round-tripping of funds, siphoning of money and violation of the Companies Act by Indiabulls' promoters. Earlier, the Court had sharply criticized the EOW and CBI over a failure to apprise the progress of investigation. 

During today's hearing, the Court was informed by Additional Solicitor General SV Raju, for CBI and EOW, that the EOW is investigating into 5 out of 6 allegations. The CBI did not investigate the same as two agencies cannot investigate same allegations. With regard to the 6th allegation (related to a case involving Rs.1575 crores), the ASG said that as chargesheet had already been filed, the CBI has moved the Special Court to seek permission for further investigation.

Advocate Prashant Bhushan, for petitioner, submitted that EOW was not competent to conduct investigation as according to an RBI circular, all bank frauds of above Rs.50 crores have to be probed by CBI. Senior Advocate Narender Hooda however opposed Bhushan, stating that there was no "bank fraud" and no bank has come before the court saying that money has not been paid back. 

When Justice Bagchi noted that EOW has given a substantially exonerating report, Bhushan contended that the "exoneration" was based on a report by the company's own CA and the claim that the original loans were returned. "That does not absolve the company" Bhushan said. On the counsel's contention qua evergreening of loans, Justice Bagchi said that evergreening of loans is not a crime by itself. 

In this backdrop, the top Court directed the concerned trial court to decide in accordance with law the CBI's application for further investigation within 2 weeks. Deeming a holistic probe by a premier agency necessary, it directed that the CBI conduct an investigation into the allegations. The Court further instructed the EOW to complete the remaining investigation (on the 6th allegation) and file a status report. 

Appearance: Senior Advocates Mukul Rohatgi, Narender Hooda, Rakesh Dwivedi and Dr AM Singhvi; Advocate Prashant Bhushan and AoR Neha Rathi; ASG SV Raju 

Case Title: CITIZENS WHISTLE BLOWER FORUM v. UNION OF INDIA, SLP(C) No. 2993/2025

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