The Supreme Court on Wednesday directed the Enforcement Directorate to constitute a Special Investigation Team to exclusively investigate allegations of large scale bank fraud involving Reliance Communications, its group companies and industrialist Anil Ambani. The order came amid concerns over delays in the probe and the magnitude of public money involved.
A Bench headed by the Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and Vipul Pancholi, said the ED must take the investigation to its logical conclusion and ensure that senior officers handle the matter.
Court Records Undertaking On Travel Restriction
During the hearing, the Court recorded an undertaking by Anil Ambani’s counsel that he would not leave the country without prior permission. The assurance was given after apprehensions were raised that Ambani could leave India before the probe concludes.
Senior Advocate Mukul Rohatgi, appearing for Ambani, told the Bench that his client was present in India and would comply with any direction of the Court. The assurance was, however, contested by the Solicitor General, Tushar Mehta, who referred to earlier instances where similar undertakings were allegedly breached.
The Court noted the assurances given by both sides and said preventive steps would be taken to ensure that the investigation is not obstructed in any manner.
CBI Asked To Probe Bank Officials’ Role
In a significant direction, the Court asked the Central Bureau of Investigation to examine whether bank officials had colluded in the alleged fraud. The Bench observed that it was imperative to investigate whether loans were sanctioned or funds released with the connivance of banking officers.
The Court directed the CBI to probe any nexus, conspiracy or collusion and to adopt all lawful measures to complete the investigation fairly and impartially.
Concerns Over Delay In Investigation
The Bench took note of arguments that both the ED and the CBI had been slow in acting on the case. It said there appeared to be an unexplained delay, particularly in view of the scale of the alleged fraud.
The Court directed both agencies to submit detailed status reports within four weeks and indicated that it expected regular updates thereafter. Oral observations from the Bench underscored the seriousness of the allegations, which involve an estimated ₹1.78 lakh crore.
Arguments From Both Sides
Advocate Prashant Bhushan, appearing for petitioner and former Union Secretary E A S Sarma, argued that the FIR was registered only in 2025 and that arrests began very late despite the case being described as the largest corporate fraud in the country.
Counsel for Anil Ambani and the Anil Dhirubhai Ambani Group denied allegations of siphoning of public funds, suggesting alternative mechanisms to examine the issue rather than criminal prosecution. These submissions were strongly contested by the Solicitor General, who cited forensic audit findings that pointed to fund diversion.
Background Of The Case
According to the petition, Reliance Communications and its subsidiaries received loans worth ₹31,580 crore between 2013 and 2017 from a consortium of banks led by State Bank of India. A forensic audit allegedly revealed diversion of funds through complex transactions, evergreening of loans and transfers to related parties.
The plea also raises concerns over a nearly five year delay by SBI in acting on the audit report, calling it a case that warrants strict judicial oversight due to the extensive exposure of public money.
