New Delhi, Feb 4 (UNI) The Supreme Court on Wednesday came down heavily on the Enforcement Directorate (ED) for the “unexplained delay” in probing the alleged bank loan fraud involving over Rs 40,000 crore by companies of the Anil Dhirubhai Ambani Group (ADAG).
The court also criticised the CBI for registering only one FIR despite receiving complaints from multiple banks.
A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi and Justice Vipul M. Pancholi observed that the CBI’s approach of expanding the scope of a single FIR, initially registered in 2025 on a complaint by the State Bank of India (SBI), to cover subsequent complaints from other banks “does not appear to be in conformity with procedural law.”
The court noted that complaints from different banks relate to separate transactions and, therefore, warrant separate FIRs. It directed the CBI to examine this aspect and also to investigate the possibility of collusion by bank officials in the alleged fraud.
“Both ED and CBI have already taken time, and we, therefore, expect that both agencies will act promptly,” the bench said, adding the ED would be “well advised” to constitute a Special Investigation Team of senior officers and take all lawful measures to carry the investigation to its logical conclusion.
The observations came while hearing a Public Interest Litigation filed by former union secretary EAS Sarma seeking a court-monitored investigation into the alleged large-scale diversion and siphoning of public funds by ADAG companies.
During the hearing, advocate Prashant Bhushan, appearing for the petitioner, urged the court to restrain ADAG chairman Anil Ambani from leaving the country, citing past instances of high-value defaulters fleeing abroad.
Solicitor General of India Tushar Mehta informed the court that look-out circulars (LOCs) had already been issued against Ambani and said the union government would welcome any prohibitory order passed by the court. At this stage, senior advocate Mukul Rohatgi, appearing for Anil Ambani, gave an undertaking that Ambani would not leave the country without prior permission of the court.
The bench recorded the undertaking, along with the Solicitor General’s statement that all preventive and remedial steps would be taken to ensure that the investigation is not impeded.
At the outset, the Solicitor General told the court that the total funds allegedly siphoned through bank loan frauds by ADAG companies were to the tune of around Rs 40,000 crore.
He informed the bench that both the ED and CBI had filed separate status reports on the ongoing investigation. When the SG stated that the FIR was registered on the basis of SBI’s complaint, the CJI questioned why separate FIRs were not lodged for complaints received from other banks.
The SG responded that this issue would be examined.
Advocate Bhushan submitted that the first report of misappropriation came from Bank of Baroda in 2020, but the FIR was registered only in 2025 after SBI’s complaint. He further pointed out that the first arrest in the case took place only last week, after the Supreme Court issued notice in the matter with the ED arresting former Reliance Communications director Puneet Garg.
Senior advocate Mukul Rohatgi denied allegations of siphoning of funds and argued that genuine loan defaults should not be criminalised. He suggested that the government could form a committee to determine the actual dues instead of proceeding with prosecution.
Senior advocate Shyam Divan, also appearing for ADAG, submitted that group companies Reliance Power Ltd. and Reliance Infrastructure Ltd. had repaid around Rs 20,000 crore. The Solicitor General countered that it would need to be examined whether certain repayments were made using funds borrowed by other group companies.
The CJI, during the exchanges, remarked that the Insolvency and Bankruptcy Code (IBC) was being “misused like anything.” In its affidavit, the ED informed the court that it has registered three Enforcement Case Information Reports (ECIRs) under the Prevention of Money Laundering Act (PMLA) concerning Reliance Commercial Finance Ltd., Reliance Home Finance Ltd., Reliance Communications Ltd., and Reliance Power Ltd.
Three additional cases under the Foreign Exchange Management Act (FEMA) are also under investigation. The agency stated that 13 provisional attachment orders covering 204 properties worth approximately Rs 12,012 crore have been issued.
It has conducted 46 searches, issued 305 summons, recorded 213 statements, made four arrests, filed two prosecution complaints, and issued 14 look-out circulars. In the Reliance Communications matter, the ED alleged that loans exceeding Rs 40,000 crore were availed from Indian and foreign lenders, with proceeds of crime estimated at over Rs 20,000 crore.
Assets worth Rs 8,078 crore have been provisionally attached in this case.
The ED also confirmed the arrest of former RCOM director Puneet Garg. The petitioner has alleged that the ongoing investigations by the CBI and ED are narrow and exclude the role of bank officials and public servants, despite forensic audit reports indicating their complicity.
