The Supreme Court on Tuesday sharply criticised the Central Bureau of Investigation (CBI) and the Delhi Police's Economic Offences Wing (EOW) for failing to update the Court on the progress of investigations into allegations of financial irregularities involving Indiabulls Housing Finance Limited, now known as Sammaan Capital Ltd.

A Bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice V Mohana expressed dissatisfaction over the agencies' inaction in a public interest litigation alleging serious financial misconduct, including round-tripping of funds, siphoning of money and violations of the Companies Act by the company's promoters.

Appearing for the petitioner, Advocate Prashant Bhushan submitted that the CBI's affidavit filed in January stated that the Enforcement Directorate (ED) and the Securities and Exchange Board of India (SEBI) had already found instances of siphoning of funds. He pointed out that the Delhi Police EOW had registered certain FIRs and that the CBI was considering clubbing five cases flagged by the ED with the Yes Bank investigation.

Bhushan further informed the Court that one of the key accused, Sameer Gehlot, had moved to London and argued that the matter warranted the constitution of a Special Investigation Team (SIT).

"The affidavit was filed in January. This case is crying for an SIT," Bhushan submitted.

Responding to the submission, the Chief Justice remarked, "We are now in July end," noting that no further affidavit had been filed since January.

Additional Solicitor General SV Raju, appearing for the CBI, submitted that the investigation was continuing and that the Serious Fraud Investigation Office (SFIO) had also taken up the matter.

The Bench, however, questioned the lack of visible progress.

"What has CBI done from January to July? We don't want to hold investigation against innocent person. Let them have courage to say because money returned, no offence is made out," the Chief Justice observed.

The ASG explained that the agency had examined witnesses and was investigating whether an offence had been committed despite repayment of loans with interest.

The Court remained unconvinced. "Investigating agency doesn't know?" the Chief Justice asked, prompting the ASG to seek time to obtain instructions.

Senior Advocate Dr AM Singhvi, appearing for one of the parties, submitted that Sameer Gehlot had nothing to do with Sammaan Capital.

The Bench nevertheless expressed concern over the role of investigative agencies.

Calling the situation "shocking," the Chief Justice observed that official agencies had remained "silent" despite the allegations. Justice Joymalya Bagchi also asked the ASG to investigate Gehlot's alleged role in the movement of capital out of Indiabulls and any subsequent involvement.

The ASG assured the Court that a fresh affidavit would be filed within two weeks.

The Court also made strong observations on the CBI's conduct, stating that its handling of the case was "highly questionable."

In its order, the Bench recorded:

"Owing to the negligence of CBI and EOW Delhi in not even filing a status report and total failure to apprise this Court about steps taken for registration of RC or investigation, we would have summoned the heads of these agencies but for the persuasion of ASG Raju, who assures that needful will be done and status report filed within ___ weeks."

The matter will be taken up after the investigating agencies file their updated status report.

The Court was hearing a petition filed by Citizens Whistleblower Forum seeking investigation into the matter. Earlier also, the Court had expressed disappointment with the approach of the SEBI and the CBI in the matter.

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