The Supreme Court of India has taken a significant step in the ongoing investigation into alleged banking frauds involving the Anil Dhirubhai Ambani Group and its promoter, Anil Ambani. On Friday, the apex court directed the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) to submit detailed status reports on their probes into these matters.
Court Seeks Sealed Reports in PIL Hearing
A bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi issued this directive while hearing a Public Interest Litigation (PIL) filed by former Union secretary EAS Sarma. The PIL specifically requests a court-monitored investigation into the alleged bank loan frauds. The court ordered that the status reports from both investigative agencies be submitted in a sealed cover, ensuring confidentiality during the ongoing proceedings.
Legal Proceedings and Key Arguments
Advocate Prashant Bhushan, representing petitioner EAS Sarma, brought to the court's attention that despite the Supreme Court issuing notices on November 18, 2025, the respondents had failed to appear. Bhushan emphasized that the media had extensively covered the court's notice, making it implausible that the parties were unaware of the proceedings. He remarked, "They would certainly know... But apparently these people watch from the sidelines."
Solicitor General Tushar Mehta, appearing for the Centre, did not oppose Bhushan's submissions. Mehta highlighted that a forensic audit had indeed uncovered evidence of fund siphoning and redirection for unauthorized purposes. Based on these findings, the State Bank of India (SBI) filed a First Information Report (FIR) with the CBI.
Forensic Audit and Legal Challenges
Mehta further explained that the forensic report faced challenges from three banks other than SBI, on grounds that the signatory was not a chartered accountant. This led to a stay order from a single judge of the Bombay High Court, which the banks subsequently appealed. The division bench has reserved its judgment, but Mehta clarified that there is no stay regarding SBI's fraud declaration. He affirmed, "The CBI FIR stands."
During the hearing, Bhushan pointed out that the CBI registered an FIR in June 2025 based on an audit report received by the Bank of Baroda in 2020. He criticized the FIR for not naming any public servants or registering the case under the Prevention of Corruption Act. Bhushan alleged, "The period of review was 2016-2019. And the report says yes, thousands of crores of loans have been siphoned off in this manner by opening shell companies."
Substantial Financial Implications
Bhushan also underscored the massive scale of the alleged fraud, noting that over Rs 1.5 lakh crore in debts from these companies had been written off during bankruptcy proceedings. He described a complex web of fraudulent transactions involving numerous shell companies and systematic fund siphoning.
Court's Directives and Future Hearings
In response to Bhushan's urgings, the Supreme Court agreed to seek status reports from both the CBI and ED. The court also issued fresh notices to the respondents and directed the Registrar General of the Bombay High Court to ensure proper service. Additionally, the Registrar General was instructed to file a compliance report.
The court noted that according to office reports, the respondents were duly served on December 19, yet they had not entered an appearance. As a final opportunity, the bench permitted them to appear on the next hearing date and file their counter affidavits, if any. The matter is scheduled for further hearing after ten days.
This development marks a crucial phase in the legal scrutiny of the Anil Ambani Group's financial dealings, with the Supreme Court actively overseeing the investigative progress to ensure transparency and accountability.
