SC Issues Notices to Centre, CBI, ED & Anil Ambani Over PIL Alleging Major Banking Fraud

NEW DELHI, Nov 18: The Supreme Court on Tuesday issued notices to the Centre, the CBI, the Enforcement Directorate (ED), Anil Ambani and others on a PIL seeking a court monitored probe into an alleged massive banking and corporate fraud involving Reliance Communications (RCom), its group companies and their promoter.

A bench comprising Chief Justice B. R. Gavai and Justice K. Vinod Chandran took note of submissions by advocate Prashant Bhushan, appearing for PIL petitioner and former Union secretary E. A. S. Sarma, and directed all parties to file their replies within three weeks. The matter will be heard again thereafter.

Bhushan argued that probe agencies have failed to investigate the alleged complicity of banks and their officials in what he termed a large scale banking fraud. He urged the court to direct the CBI and ED to submit status reports specifically addressing the role of banks and their officers.

“Issue notice… returnable in three weeks. Let them file their replies,” the CJI said.

According to the PIL, there has been systematic diversion of public funds, fabrication of financial statements and institutional complicity across multiple entities of the Anil Ambani-led Reliance ADA Group. It states that the FIR registered by the CBI on August 21 and related ED proceedings cover only a fraction of the alleged fraud.

Despite forensic audits highlighting serious irregularities, the petition alleges that neither agency is examining the conduct of bank officials, auditors or regulators  which it terms a “critical failure”.

The plea also notes that findings of systematic financial irregularities have been previously acknowledged in a judgment of the Bombay High Court.