SC Orders SIT Probe Into Anil Ambani Bank Fraud Case, Seeks Faster Action by ED, CBI

The Supreme Court on Wednesday ordered the Enforcement Directorate (ED) to constitute a dedicated Special Investigation Team (SIT) to probe allegations of the large-scale bank fraud involving industrialist Anil Ambani and companies of the Anil Dhirubhai Ambani Group (ADAG).

A bench comprising Chief Justice of India Surya Kant and Justices Joymalya Bagchi and Vipul Pancholi directed the ED to ensure that the investigation is taken to its "logical conclusion" and conducted without disruption.

The case relates to alleged financial irregularities linked to multiple ADAG entities, including the bankrupt Reliance Communications (RCOM), where Anil Ambani earlier served as the director.

In a bid to prevent any interference with the investigation, SC also recorded an undertaking given by Ambani's counsel that he would not leave the country without the court's permission.

Additionally, the court asked the Central Bureau of Investigation (CBI) to examine whether bank officials were involved in the alleged fraud. The bench instructed the agency to investigate any possible nexus, collusion or conspiracy between company executives and banking officials.

"The CBI must look into the nexus, collusion, conspiracy, if any, and adopt all lawful measures to take the investigation to its logical end," the court said, according to Bar and Bench.

The bench also took note of submissions alleging delay in the investigations by both the ED and the CBI, and said it expects the agencies to ensure a fair, effective and timely probe. Referring to a status report filed by the CBI, the court observed that the agency initially registered an FIR based on a complaint by the SBI and later expanded the probe to include complaints from other banks, an approach the bench said appeared procedurally questionable.

Meanwhile, appearing for Anil Ambani, senior advocate Mukul Rohatgi denied allegations of fund siphoning and said his client was not opposing the formation of an SIT. Senior advocate Shyam Divan, representing ADAG companies, also rejected claims of diversion or misuse of funds.

The fraud case stems from the allegations that companies in the Reliance Group, especially RCOM , took large loans from banks and later failed to repay them. As the RCOM telecom business collapsed, banks claimed they were left with massive losses running into thousands of crores. What began as a corporate default later drew the attention of investigative agencies.

Notably, during this latest hearing, the ED informed the court that it has registered three cases under the Prevention of Money Laundering Act (PMLA) related to Reliance Commercial Finance, Reliance Home Finance, Reliance Communications and Reliance Power, along with three cases under the Foreign Exchange Management Act (FEMA).

The agency said it has issued 13 provisional attachment orders covering 204 properties valued at around ₹12,012 crore. With regard to RCOM, the ED alleged that loans exceeding ₹40,000 crore were taken from Indian and foreign banks, with proceeds of crime estimated at over ₹20,000 crore. Assets worth ₹8,078 crore have been provisionally attached, and former RCOM director Punit Garg has been arrested in connection with the probe.