SC issues notice to Centre, ED, CBI, and Anil Ambani:Seeks updates on RCom fraud probe within 3 weeks

The Supreme Court has issued notices to the central government, the CBI, the ED, Anil Ambani, and several others in connection with a petition requesting a court-monitored probe into alleged banking and corporate fraud involving Reliance Communications (RCOM), other companies of the Anil Dhirubhai Ambani (ADA) Group, and promoter Anil Ambani. The notice was issued on Tuesday (November 18) during the hearing of a PIL filed by former Central Secretary EAS Sarma. A bench comprising Chief Justice B.R. Gavai and Justice K. Vinod Chandran directed all parties to submit their replies within three weeks. Key Points from the Petition 1. Advocate Prashant Bhushan, representing the petitioner, argued that the CBI and ED have not investigated alleged collusion between banks and their officials despite the scale of the suspected fraud. He urged the court to direct both agencies to file detailed status reports on their investigations into the banks and their officers. 2. The petition alleges that several companies under Anil Ambani’s Reliance ADA Group systematically misused public funds and falsified balance sheets, actions that were allegedly enabled through cooperation from banks and their officials. 3. The CBI registered an FIR on August 21. The ED’s action involving Anil Ambani is described in the petition as only a small part of a larger scam. The petition cites findings from a forensic audit revealing serious irregularities and notes that the Bombay High Court has previously acknowledged multiple instances of fraud and fund diversion. On July 24, the Enforcement Directorate (ED) conducted raids at more than 35 locations and around 50 companies connected to Anil Ambani’s Reliance Group. A month later, on August 23, the Central Bureau of Investigation (CBI) also searched Anil Ambani’s residence. CBI Filed Case Against Anil Ambani in August On August 23, the CBI registered a case against Reliance Communications (RCOM) in connection with an alleged ₹2,929-crore bank fraud. On the same day, the agency carried out searches at RCOM’s office and at Anil Ambani’s Mumbai home. The case is linked to loans issued by the State Bank of India (SBI). Allegations of Loan Misuse Recently, SBI declared both Anil Ambani and his company Reliance Communications as “fraud” accounts, alleging misuse of loans amounting to ₹31,580 crore taken from multiple banks. According to SBI, Meanwhile, personal insolvency proceedings against Anil Ambani are underway at the National Company Law Tribunal (NCLT), Mumbai.