Supreme Court Issues Notices to Centre, CBI, ED & Anil Ambani in PIL Alleging ₹20k Cr Bank Fraud by Reliance Communications
The petition primarily sought that the Supreme Court monitor the investigation by the CBI and ED or constitute a Special Investigation Team with officers from both agencies
The Supreme Court of India issued notices to the Union Government, Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and industrialist Anil Ambani on Tuesday while adjudicating a public-interest litigation seeking a court-monitored probe into an alleged ₹20,000-crore banking and corporate fraud involving Reliance Communications (RCom), its group entities and the Anil Dhirubhai Ambani Group (ADAG).
According to the petition, between 2013 and 2017, RCom, Reliance Infratel (RITL) and Reliance Telecom (RTL) borrowed approximately ₹31,580 crore from a consortium of banks led by the State Bank of India (SBI). SBI later lodged a First Information Report (FIR) on August 21, 2025, alleging criminal conspiracy, cheating, breach of trust and misconduct against RCom which resulted in a loss of ₹2,929.05 crore.
The complaint was based on a 2019 forensic audit that reportedly revealed fund diversion, fictitious transactions and the use of shell companies to mask ever-greening of loans.
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“Ever-greening of loans is the practice of giving new loans to a borrower to repay old ones, creating an illusion that the original loans are being serviced.”
The PIL contends that despite forensic findings of systematic diversion of public funds, the CBIand ED have not probed the role of bank officials, auditors or regulators who may have been complicit in enabling or concealing the fraud. The PIL further points to a five-year delay between the completion of the audit and the filing of the FIR, hinting at institutional complicity in the fraud.
Prashant Bhushan appeared for the public interest litigant and former Union Secretary E. A. S. Sarma, and argued that the investigative agencies failed to examine the alleged complicity of public-sector banks and their officials in what he described as “probably the largest corporate fraud in India’s history.”
The petition primarily sought that the Supreme Court monitor the investigation by the CBI and ED or constitute a Special Investigation Team (SIT) comprising officers from both agencies to ensure an impartial, coordinated and time-bound probe.
Sarma’s petition further raised allegations of cross-border fund transfers through offshore entities in Mauritius, Cyprus and the British Virgin Islands, claiming the total exposure could exceed ₹20,000 crore. Though searches have been conducted at more than thirty-five premises, the petition says no arrests, seizures or freezing of accounts have taken place, thus warranting judicial intervention.
Seeking directions for a court-monitored investigation, the PIL urged the apex court to ensure that the probe into the affairs of Reliance Communications and associated companies is “fair, independent, comprehensive and free from external influence.”
A Bench headed by Chief Justice B. R. Gavai and Justice K. Vinod Chandran took note of submissions made by the Counsel and directed the respondents to file replies within three weeks. The matter will be listed for further hearing thereafter.
Case Details:
Supreme Court of India
Diary No. - 65397/2025
Petitioner(s)
EAS SARMA
Respondent(s)
UNION OF INDIA
ENFORCEMENT DIRECTORATE
CENTRAL BUREAU OF INVESTIGATION
ANIL DHIRUBHAI AMBANI GROUP
ANIL DHIRUBHAI AMABANI
Petitioner Advocate(s) PRASHANT BHUSHAN
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