SC defers to May 8 hearing on PIL alleging banking fraud by Anil Ambani-led ADAG

The Supreme Court on Thursday deferred to May 8 the hearing of a public interest litigation PIL alleging largescale banking fraud involving companies of the Anil Dhirubhai Ambani Group ADAG The petition has raised concerns over alleged loan defaults and diversion of funds exceeding Rs 40000 crore reported PTIA bench comprising Chief Justice Surya Kant and Justice Joymalya Bagchi adjourned the matter after taking note of fresh status reports submitted by central probe agenciesCBI and ED submit status reports court flags need for transparencyAppearing for the Central Bureau of Investigation and the Enforcement Directorate Solicitor General Tushar Mehta informed the court that both agencies had filed updated reports in compliance with earlier directionsDuring the hearing advocate Prashant Bhushan representing the petitioner alleged that despite identifying key individuals in the case no significant action had been taken so farThe bench reiterated that the purpose of judicial oversight is to ensure a fair transparent and timebound investigation into the allegationsKapil Sibal seeks opportunity to present defenceSenior advocate Kapil Sibal appearing for industrialist Anil Ambani requested the court to grant him time to present arguments and place additional facts on recordThe bench indicated that it would hear all parties before taking cognisance of the status reports ensuring that due process is followedProbe agencies under scrutiny for pace of investigationThe court had earlier expressed concern over what it described as a lack of urgency in the investigation by the Central Bureau of Investigation and the Enforcement DirectorateIt directed both agencies to carry out a ldquofair dispassionate transparent and timeboundrdquo probe The court also asked financial institutions to fully cooperate with investigators and permitted agencies to approach it if they encounter noncooperation from any entitySIT formed assets attached and arrests madeThe Solicitor General informed the court that a Special Investigation Team SIT has been constituted comprising senior ED officials and financial experts The agencies have so far attached assets worth approximately Rs 15000 crore and arrested four individuals including senior officialsThe court noted that multiple FIRs are currently under investigation seven by the CBI and eight by the ED indicating the scale and complexity of the caseAllegations point to largescale financial irregularitiesAccording to submissions before the court the total alleged fraud amount could be as high as Rs 73000 crore The bench also referred to instances where substantial loan amounts were reportedly settled for significantly lower sumsThe Enforcement Directorate has alleged defaults of thousands of crores in entities such as Reliance Home Finance and Reliance Commercial Finance citing largescale diversion of public fundsAdditionally investigations are underway into allegations involving forged bank guarantees submitted to a governmentlinked entity resulting in financial lossesPIL seeks courtmonitored probe into alleged systemic fraudThe PIL filed by former bureaucrat E A S Sarma has called for a courtmonitored investigation into what it describes as systemic financial misconduct involving multiple ADAG entitiesIt alleges diversion of public funds manipulation of financial statements and institutional lapses over several years The petition also argues that existing investigations cover only a limited portion of the alleged wrongdoingCourt stresses need for coordinated and timebound investigationThe bench emphasised that investigative agencies must work in coordination to uncover the full extent of the case It underscored the importance of completing the probe independently and within a defined timeframeAnil Ambani has assured the court that he will not leave the country without prior permission addressing concerns raised by the petitionerThe matter is now scheduled for further hearing on May 8 when the court is expected to review the status reports and hear detailed arguments from all parties involvedWith inputs from PTI