Anil Ambani Pledges to Stay in India as Supreme Court Monitors Rs 40,000 Crore Fraud Probes
In a significant development, industrialist Anil Ambani on Wednesday provided a formal undertaking to the Supreme Court through his legal counsel, assuring that he will not flee India while court-monitored investigations by the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) are ongoing. These probes focus on allegations of siphoning approximately Rs 40,000 crore from loans obtained from various banks.
Concerns Over Flight Risk and Legal Assurances
The bench, comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi, and Justice Vipul M Pancholi, expressed concerns after petitioner EAS Sarma's counsel, Prashant Bhushan, raised apprehensions about the principal accused potentially leaving the country due to the extensive scale of the alleged fraud. The court emphasized, "We don't want any such thing to happen," highlighting the gravity of the situation.
Solicitor General Tushar Mehta, representing both the CBI and ED, informed the court that a look out circular (LOC) has been issued against Anil Ambani, ensuring that any attempt to flee would be intercepted at airports. In response, Ambani's counsel, Mukul Rohatgi, pointed out that multiple LOCs are already in place against his client. He further argued that if Ambani intended to escape, he would not have facilitated the repayment of Rs 20,000 crore to banks by two ADAG companies over the past three years.
Court's Scrutiny of Investigation Procedures
The Supreme Court bench raised critical questions about the CBI's handling of the case. It noted that the agency had registered only one FIR based on a complaint from the State Bank of India (SBI) against ADAG, while incorporating similar allegations from other banks and financial institutions into the same FIR. The bench questioned this approach, stating, "Each loan taken is a separate agreement. The modus operandi may be similar but violation of each agreement is a separate offence. Why would CBI not register separate FIRs?" Mehta assured the court that the CBI would review this matter and file separate FIRs if deemed necessary.
Additionally, the court found it unusual that the CBI was awaiting sanctions to investigate bank officials suspected of colluding with ADAG officials in the alleged fraud. It directed the agency to proceed with investigating all involved bank officials, disregarding any legal obstacles. The Supreme Court affirmed its commitment to continuing oversight of the CBI and ED probes, requesting a fresh status report from both agencies within four weeks.
Background of the Alleged Fraud
The petition, filed through advocate Pranav Sachdeva, alleges that ADAG companies—Reliance Communications, Reliance Infratel, and Reliance Telecom—collectively received loans totaling Rs 31,850 crore from a consortium of public sector banks led by SBI between 2013 and 2017. SBI's deputy general manager, Jyoti Kumar, registered an FIR on August 21, accusing Reliance Communications, Anil Ambani, and other individuals of conspiracy, cheating, criminal breach of trust, and criminal misconduct, resulting in a loss of Rs 2,929 crore.
This FIR was based on a forensic audit report of the financial transactions of the three ADAG companies from 2013 to 2017, commissioned by SBI in 2019. The ED, in its affidavit, disclosed that it has registered three Prevention of Money Laundering Act (PMLA) FIRs against ADAG companies, conducted searches at 46 premises, issued 305 summonses, attached 204 properties valued at Rs 12,000 crore, and arrested four individuals. Under the Foreign Exchange Management Act (FEMA), properties worth Rs 78 crore have also been attached.
The Supreme Court's active involvement underscores the high-stakes nature of this case, as it seeks to ensure transparency and accountability in the investigations into one of India's most prominent financial fraud allegations.
