Top Court Directs Agencies To Speed Up Probe Into Anil Ambani-Linked Firms

The Supreme Court has directed the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) to move faster in their investigations into several Reliance Group companies. 

The order was issued on Monday as the Supreme Court reviewed allegations of large loan defaults and diversion of funds involving Reliance Commercial Finance (RCFL), Reliance Home Finance (RHFL), Reliance Communications (RCOM), and Reliance Power (RPOWER).

During the hearing, the ED informed the Court that it is handling multiple cases registered under the Prevention of Money Laundering Act. The agency highlighted the size and complexity of the matter, noting alleged defaults by RHFL involving 33 lenders, with the unpaid dues treated as "proceeds of crime."

RCFL has been flagged for major defaults across 21 lenders, while dues linked to RCOM reportedly run into tens of thousands of crores. A former director of RCOM is already in custody. 

In the case of RPOWER, the ED pointed to charges of forged bank guarantees in a particular project, which have resulted in arrests.

The ED told the Court that it has conducted searches at 46 locations, issued 13 provisional attachment orders, and seized 204 properties valued at more than Rs 12,000 crore. Despite this, the Court expressed dissatisfaction with the pace and methodology of the current investigations. It questioned the CBI's approach of merging complaints from multiple banks into a single FIR, stating it may not align with procedural law.

The Court advised the ED to consider forming a Special Investigation Team of senior officers and forensic specialists to examine the financial transactions involved. It also instructed the CBI to investigate potential collusion between bank officials and company management.

The Court dismissed reliance on Section 17A of the Prevention of Corruption Act as "misconceived" in this context, removing potential hurdles for the agencies.

The Court also made it clear that ED and CBI must carry out their work promptly, independently, fairly, and dispassionately. They also addressed concerns about potential attempts to evade investigation. 

Addressing concerns that key figures might leave the country, counsel for the respondent assured the Court that Anil Ambani will not travel abroad without prior judicial permission. The Solicitor General further guaranteed that preventive measures would be taken to ensure the probe remains unobstructed.

The ED and CBI have been asked to submit detailed status reports within four weeks. The matter will next be heard on March 10.