In a packed courtroom on Monday, the Supreme Court briefly heard a public interest plea alleging that the RCOM–Anil Ambani bank loan saga is far bigger than what current investigations suggest. The petitioner, former Union Secretary EAS Sarma, stood firm as he urged the Court to supervise a “full and fearless” probe into what he called a massive, years-long banking fraud. From the mood of the bench, it was clear the judges were in no hurry to brush this under the carpet.
Background
Sarma’s petition revolves around loans of ₹31,580 crore extended between 2013 and 2017 to Reliance Communications (RCOM) and its subsidiaries by a consortium of banks led by State Bank of India. According to him, forensic audits commissioned by SBI had, as early as 2020, pointed to extraordinary diversion of funds - from routing money through shell firms to using closed bank accounts for transactions.
Read also: Supreme Court signals fresh push for pending 2025 guidelines, adjourns plea by disabled students
Yet, SBI filed its complaint only in August 2025, nearly five years after receiving the audit findings. “This delay is not just delay; it raises eyebrows,” the petition claims, hinting at what it calls “institutional complicity”. The plea further alleges that the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) are probing just the surface while ignoring the involvement of bank officials, regulators and auditors.
During the brief exchange in court, Sarma’s counsel pointed out that the Bombay High Court had already noted patterns of fund diversion in related insolvency proceedings. Documents placed on record claim involvement of several shell entities - like Netizen Engineering and Kunj Bihari Developers - which allegedly helped move thousands of crores through circular transactions and sham share write-offs.
Read also: Supreme Court Slams Madhya Pradesh High Court for 'Shocking' Habeas Corpus Bail Order, Sets Aside
Court’s Observations
The bench, led by Justice........(name not in order), didn’t conceal its concern. While scanning the papers, one of the judges remarked, “If these findings are accurate, then this is not a routine banking lapse but something deeper.” Another judge added that the Court “cannot ignore specific allegations that the forensic audit itself has flagged fabrication of accounts and non-existent bank transactions.”
The petitioner’s counsel emphasized the scale of the alleged fraud: evidence suggesting cross-border transfers routed through Mauritius, Cyprus and the British Virgin Islands; subsidiaries advancing inter-corporate deposits worth ₹16,000 crore despite negative net worth; and several promoter-linked companies receiving thousands of crores through opaque structures.
At one point, the bench asked the Union government whether the ongoing ED and CBI investigations had examined the role of bank officers. The ASG responded cautiously, saying the agencies were “examining all relevant aspects,” but the bench didn’t seem entirely convinced. In a telling moment, one judge observed, “A fair investigation is not just about the number of FIRs; it’s about whether the right people are being questioned.”
Read also: Bombay High Court Quashes MPDA Detention of Solapur Resident, Says Bail Conditions Were Ignored
Decision
After hearing both sides for a short while, the Supreme Court issued notice to the Union government, CBI, ED and SBI. The Court asked them to file detailed responses explaining the status, scope and depth of their investigations. It clarified that it would consider the question of a court-monitored probe only after examining those replies. The matter will now return after the agencies place their affidavits on record, and until then, the Court has not granted any specific directions beyond seeking their explanations.
Case Title: EAS Sarma PIL Seeking SC-Monitored Probe Into Alleged RCOM–Anil Ambani Loan Fraud
Court: Supreme Court of India
Petitioner: EAS Sarma, former Government of India Secretary
Respondents: Union of India, CBI, ED, SBI