Supreme Court directs CBI, ED to conduct fair, time bound probe against ADAG firms

The Supreme Court on Monday voiced concern over the “reluctance” shown by CBI and ED in probing the alleged large-scale banking fraud involving Anil Dhirubhai Ambani Group and its firms, and directed them to conduct a “fair, dispassionate, transparent, and time-bound” investigation into the matter.

A bench of Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul M Pancholi sought fresh status report and directed all concerned financial institutions to “render full cooperation to ED”.

Taking up a PIL filed by former bureaucrat E A S Sarma seeking a court-monitored investigation into alleged loan frauds exceeding Rs 40,000 crore by Anil Dhirubhai Ambani Group (ADAG) firms led by Anil Ambani, the bench permitted the central probe agencies to approach it in case there is any reluctance on the part of other government bodies in extending cooperation to them.

Solicitor General Tushar Mehta for the agencies said that an SIT, in pursuance of an earlier order, had been constituted comprising senior ED officers and financial experts from the banking sector.

He said the probe agencies, so far, attached assets worth Rs 15,000 crore and also arrested four persons, including a few senior officials.

Advocate Prashant Bhushan, appearing for Sarma, referred to a SEBI report and said it has been highlighted that there was a scheme devised to siphon off money and yet CBI has not made any arrests so far.

“Arrests have been made. We cannot make random arrests,” Mehta said.

On this, the bench said, “We cannot direct (them) whom to arrest; but the investigating agencies, the way they have shown reluctance, is not acceptable. They should say in a time-bound manner as to what has been found. Your investigation should reveal what has been done and must inspire confidence not only in us, but everybody.”

The bench referred to certain facts disclosed in the fresh status reports of the probe agencies and said CBI and ED are presently probing seven and eight FIRs, respectively.

It also said that a loan amount of more than Rs 3,000 crore has been apparently settled by paying Rs 26 crore.

The bench said it is estimated that the total fraud amount is around Rs 73,000 crore.

“The investigating agencies must join hands and find out the issue. We impress upon CBI and ED that the probe be completed most dispassionately and independently so that it is taken to a logical conclusion in a time-bound manner,'' the bench said.

The court noted the Solicitor General assured that no stone would be left unturned to unearth the truth. He has pointed to the second status report by ED, where details have been sought from financial institutions.

" We allow the prayer in its entirety,” the bench ordered.

Senior advocate Mukul Rohatgi, appearing for Anil Ambani, said that due to the pendency of the PIL, the lending banks are not willing to have a dialogue with him to settle the dues.

“Due to the pendency of the case, they are hesitant,” Rohatgi said.

The bench said it has not stopped anyone from having any consultations.

The bench sought fresh status reports from the probe agencies and fixed the PIL for further hearing after four weeks. The PIL alleged systematic diversion of public funds, fabrication of financial statements and institutional complicity across multiple entities of the Anil Ambani-led Reliance ADAG.