The Supreme Court of India has taken significant action in what petitioners describe as potentially the largest corporate fraud case in the country's history. On Tuesday, the apex court issued formal notices to multiple agencies and parties involved in the alleged bank fraud case concerning companies promoted by businessman Anil Ambani.
Court Issues Notices to Multiple Agencies
A bench led by Chief Justice of India B R Gavai and Justice K Vinod Chandran directed the Centre, Central Bureau of Investigation (CBI), Enforcement Directorate (ED), Anil Dhirubhai Ambani Group, and Anil Ambani himself to respond to a plea seeking a court-monitored investigation. The petition was filed by former Union secretary E A S Sarma, who has raised serious concerns about the handling of the case.
The court's intervention comes amid allegations that investigating agencies have failed to properly examine the institutional angle of the fraud, particularly the possible collusion between bank officials and the corporate entities involved.
Long History of Alleged Fraud
During the proceedings, prominent advocate Prashant Bhushan, representing the petitioner, presented startling revelations about the timeline of the alleged fraud. He contended that while the First Information Report (FIR) was registered only in 2025, the fraudulent activities have been ongoing since 2007-2008.
Bhushan emphasized the critical need for a comprehensive investigation that goes beyond the current limited scope. "We want a status report from ED and CBI on what they are investigating, because clearly they are not probing the collusion by the banks," he stated before the court.
Institutional Collusion Concerns
The petition highlights several alarming aspects that suggest possible institutional involvement in concealing the fraud. According to the plea, investigating agencies have overlooked the five-year delay in filing the FIR by the bank, which strongly indicates potential involvement of bank officials and other public servants.
One of the most serious allegations concerns the handling of the 2020 Forensic Audit Report. The petition states that despite possessing this report—which contained detailed evidence regarding fund diversion, evergreening of loans, fictitious transactions, and use of shell entities—the bank took no statutory action until August 2025.
This unexplained delay forms a crucial part of the petitioner's argument that public officials may have acted in collusion or with deliberate intent to shield the borrower group from legal consequences.
Demand for Comprehensive Investigation
The petitioner has urged the Supreme Court to ensure that the investigation encompasses all grave offences revealed in various reports and documents available in the public domain, rather than being restricted to the 2025 FIR and related ED investigations.
"The CBI and ED, however, have entirely failed to investigate this institutional angle, thereby excluding from scrutiny the very public officials whose complicity or willful inaction forms an essential part of the criminal conspiracy," the plea added, underscoring the need for a more thorough probe.
The case now awaits responses from all parties involved, with the Supreme Court maintaining oversight of what could become one of the most significant corporate fraud investigations in India's financial history.
