The Supreme Court on Friday (23 January 2026) sought detailed status reports from the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) in connection with alleged large-scale bank fraud involving companies of the Anil Dhirubhai Ambani Group. The court was hearing a public interest petition that alleges massive diversion of public funds and lapses in investigation by enforcement agencies.
A Bench led by Chief Justice of India Surya Kant and Justice Joymalya Bagchi passed the directions while hearing a petition filed by former Union Secretary E.A.S. Sarma.
Read Also:- Leopard Attack or Murder? Bombay High Court Grants Bail to Key Accused in Shocking Yavat Killing Case
Background of the Case
The petition alleges that companies linked to the Anil Ambani-led ADAG availed loans worth over ₹1.5 lakh crore from public sector banks, a large part of which was allegedly siphoned off through shell companies and questionable transactions.
According to the plea, Reliance Communications and its group firms received loans of about ₹31,580 crore between 2013 and 2017 from a consortium led by the State Bank of India. A forensic audit later flagged large-scale diversion of funds, circular transactions, and use of untraceable entities.
Despite the audit being completed in 2020, the SBI reportedly lodged a formal complaint only in 2025. The delay, the petitioner argued, raised serious questions about the role of bank officials.
Read Also:- Bombay High Court Dismisses Plea Against PSU Banks’ Right to Reject Candidates for Past Misconduct
Court Observation
Appearing for the petitioner, advocate Prashant Bhushan told the court that this was “probably the largest bank loan fraud in the country.” He alleged that more than ₹1.5 lakh crore had been written off and that money was routed through shell companies.
“The investigation is incomplete. It does not touch the role of bank officials who sanctioned and monitored these loans,” Bhushan submitted.
He also pointed out that Anil Ambani and his group companies had not appeared before the court despite notices being issued earlier.
Taking note of this, the bench observed that although notices were served, the respondents had not entered appearance. “In the interest of justice, we are granting one last opportunity,” the court said.
The bench directed the Registrar General of the Bombay High Court to ensure proper service of fresh notices on Anil Ambani and the ADAG entities.
Read Also:- Bombay High Court Dismisses Plea Against PSU Banks’ Right to Reject Candidates for Past Misconduct
CBI and ED Asked to Submit Reports
On Bhushan’s request, the Supreme Court directed the CBI and the ED to file detailed status reports in sealed cover within ten days.
Solicitor General Tushar Mehta, appearing for the Centre, informed the court that he was not opposing the request. He said the FIR had been registered following a forensic audit by the State Bank of India.
“There was a forensic audit. It found diversion of funds. Based on that, SBI lodged an FIR with the CBI,” the Solicitor General told the bench.
However, the petitioner argued that the current investigation focuses only on a narrow portion of the alleged fraud and ignores the role of public servants, despite available material suggesting their involvement.
Read Also:- Bombay High Court Rejects Clerks’ Pay Claim, Upholds Withdrawal of Pre-2001 Salary Benefits
Allegations of Large-Scale Diversion
The petition refers to multiple forensic audits and investigative reports, including one by Cobrapost, which allegedly found diversion of nearly ₹41,921 crore. This included funds routed through offshore entities in Mauritius, Cyprus and the British Virgin Islands.
It also cites a 2022 forensic audit of Reliance Capital, which allegedly revealed irregular inter-corporate deposits, undervalued transactions, and violations of lending norms.
According to the plea, entities such as Netizen Engineering Pvt. Ltd. and Kunj Bihari Developers Pvt. Ltd. were used as conduits, but were later found to be non-existent at their registered addresses.
The petitioner argued that bank officials involved in sanctioning and monitoring the loans fall under the definition of “public servants” and must be investigated under the Prevention of Corruption Act.
Read Also:- Allahabad HC Refuses to Change Child Custody, Modifies Visitation in Long-Running Parents
Court’s Decision
After hearing all sides, the Supreme Court directed the CBI and ED to submit sealed status reports on their investigations. The court also issued fresh notices to Anil Ambani and ADAG, granting them a final opportunity to respond.
The bench fixed the matter for further hearing after the submission of reports and directed the Bombay High Court Registrar General to ensure compliance of service.
The matter will now be taken up after the agencies place their findings before the court.
Case Title: EAS Sarma v. Union of India & Others
Case Number: W.P.(C) No. 1217 of 2025
Case Type: Public Interest Litigation
Decision Date: 23 January 2026
