Would not pass arrest order now, but will monitor probe: Supreme Court on Anil Ambani fraud case

New Delhi: The Supreme Court on Friday said it would not pass orders to arrest industrialist Anil Ambani in the case of alleged bank fraud by Reliance Communications (RCOM) and its group entities, but emphasized that it wanted 'thorough investigation' into the matter.

As advocate Prashant Bhushan, for PIL petitioner E A S Sarma, described Ambani as the “kingpin” of the scam and urged the court to take coercive action, a bench of Chief Justice of India Surya Kant and Justice Joymalya Bagchi said the court would prefer to monitor the matter.

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.

Bhushan alleged Ambani is the kingpin in the scam and he found it very puzzling, neither the CBI nor the ED was willing to arrest him, as if he was some holy cow.

"He is above being arrested, I find it very strange," Bhushan said.

On this, the bench said, ''Our problem is on this issue, we suppose disposing of the matter finally then we will be justified in expressing certain views on certain aspects. But, as of now, we are planning to monitor."

Bhushan said they are arresting some of the lower functionaries. Solicitor General Tushar Mehta said not lower but higher functionaries.

The bench also said that this court would be very shy to order arrest unless the investigating arm wants, stressing arrest cannot be ordered to sensationalise it.

Bhushan said he does not want to sensationalise and do not want to overreach in any way. “I am surprised in a case where the CBI chargesheet says that so much money has been siphoned of at his express directions," Bhushan said.

The bench said there are cases where custodial interrogation becomes needed. “We leave it to the investigating authority as of now without expressing opinion. Let us see how they proceed," the bench said.

Senior Advocate Kapil Sibal, appearing for Ambani, said, “there is a chargesheet that is filed. Cognizance has not been taken by the court; how does he have the chargesheet…Your (Bhushan) agenda is arrest Anil Ambani."

Sibal said Ambani has cooperated and not sought anticipatory bail, and for last two years he has not been abroad.

He contended that there is no question of Ambani running anywhere. "Maybe, I was cheated," Sibal said.

The bench said that it was not deciding anyone's guilt or innocence and was only ensuring that the probe was on the right track.

The bench observed that it is confident the agencies will reach a logical conclusion and that the process should be time-bound so that public confidence is maintained.

Senior advocate Shyam Divan, for ADAG group companies, urged the court to consider the impact of the probe and attachment proceedings on listed companies such as Reliance Infrastructure and Reliance Power.

Sibal also asked the bench to clarify that its monitoring of the probe should not be treated as a reflection on the merits of the allegations.

However, the apex court did not make any such observation and simply adjourned the matter. The bench recorded that the CBI and the ED have filed status reports.

Former bureaucrat Sarma sought a fair, prompt and dispassionate probe into the alleged massive banking and corporate fraud involving the ADAG, Anil Ambani and the group companies.

On February 4, the court had observed that such a huge amount of money has been siphoned and directed CBI and the ED to conduct a “fair”, “prompt” and dispassionate probe into alleged massive banking and corporate fraud to the tune of Rs 40,000 crore involving Anil Dhirubhai Ambani Group (ADAG) and Anil Ambani.