Supreme Court Criticises ED & CBI Probe In ADAG Bank Fraud Case; Anil Ambani Undertakes Not To Leave India

The Supreme Court on Wednesday criticised the "unexplained delay" on the part of the Enforcement Directorate in investigating the alleged bank loan fraud of over Rs 40,000 crores by Anil Dhirubhai Ambani Group (ADAG) companies.The Court also criticised the Central Bureau of Investigation (CBI) for registering only a single FIR with respect to the complaints received from various banks. The Court noted that one FIR was registered in 2025 on the basis of a complaint from the State Bank of India, and the subsequent complaints from other banks and financial institutions are also being investigated by enlarging the scope of the first FIR. The Court commented that the "said approach adopted by the CBI does not seem to be in conformity with the procedural law" as each complaint is a separate transaction, warranting a separate FIR.The Court directed the CBI to investigate the possibility of collusion on the part of bank officers as well."Both ED and CBI have already taken time, and we therefore expect that both agencies will act promptly," the Court observed in the order. The Court further observed that "the ED is well advised to constitute a Special Investigation Team comprising senior officers and take all lawful measures to take the ongoing investigation to a logical conclusion."A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi, Vipul Pancholi was hearing a Public Interest Litigation filed by EAS Sarma, former Union Government Secretary, seeking a Court-monitored investigation into the matter.Anil Ambani won't leave the country, undertaken given to the CourtAdvocate Prashant Bhushan, for the petitioner, urged the Court to also restrain the group chairman Anil Ambani from leaving the country, saying that there are past instances of defaulters fleeing the country. Solicitor General of India Tushar Mehta, who informed the Court that LOCs have been issued against him, welcomed the Court passing any prohibitory order against Ambani.At this juncture, Senior Advocate Mukul Rohatgi, Anil Ambani's lawyer, gave an undertaking that he won't leave the country without the prior permission of the Court. SG then said that Rohatgi had given a similar undertaking to the Delhi High Court years ago with respect to another individual, and despite that, he had fled the country. "But he came back and paid the amounts to the government," Rohatgi replied.The Court recorded the undertaking of Rohatgi, as well as the statement of the SG that all preventive and remedial action will be taken to ensure that no impediment is caused in the investigation.Rs 40,000 crores siphoned off : SG tells the CourtAt the outset, Solicitor General of India Tushar Mehta informed the Supreme Court that the funds alleged to be siphoned off through bank loan frauds by the Anil Ambani Dhirubhai Ambani Group companies are worth around Rs 40,000 crore.SG further informed that the Enforcement Directorate and the Central Bureau of Investigation have filed their separate status reports regarding the investigation.When the SG said that the FIR was registered on the basis of a complaint by the State Bank of India, CJI Surya Kant asked why separate FIRs were not registered with respect to the complaints from other banks."The first FIR came from the State Bank of India. Thereafter,other banks also informed us about alleged siphoning; they are also part of the same FIR now," SG said.CJI Kant said that complaints from other banks constitute separate transactions and hence separate FIRs could be registered. SG said that this aspect will be examined.Advocate Prashant Bhushan, for the petitioner, submitted that the first report about the misappropriation of funds came from the Bank of Baroda in 2020; but the FIR was registered only in 2025 after a complaint from the SBI. Bhushan further submitted that the first arrest in the case happened only two days back, after the Court issued notice in the matter(ED had arrested former R-Com director Puneet Garg last week).Senior Advocate Mukul Rohatgi, appearing for Anil Ambani, suggested that a committee can be formed by the Government to look at what is the amount due. He denied that there was any siphoning off of funds and claimed that genuine defaults should not be criminalised."I have a proposal to make- in the sense, since the govt is here, if through the good offices of the Court, they can form a committee and let's have a look at it, what amount is due, that is one way to look at it, instead of going for prosecution, these are my instructions," Rohatgi submitted.Senior Advocate Shyam Divan, for the Anil Ambani Dhirubhai Ambani Group, submitted that two group companies -Reliance Power Ltd and Reliance Infrastructure Ltd - have paid back Rs 20,000 crores. "These companies are in the nature of paying back. We are trying to ensure that the payments are being made. There is no question of siphoning," Divan said. SG said that it will have to be examined if some companies paid back the amounts by...

Supreme Court Criticises ED & CBI Probe In ADAG Bank Fraud Case; Anil Ambani Undertakes Not To Leave India

Anmol Kaur Bawa

The Court, criticising the delay on the part of CBI and ED, asked the agencies to take the investigation promptly to its logical conclusion.

Tags