SC orders SIT probe into Anil Ambani-linked bank fraud case
What's the story
The Supreme Court has ordered the establishment of a Special Investigation Team (SIT) to probe the alleged bank fraud case involving Anil Ambani and various entities under the Anil Dhirubhai Ambani Group (ADAG). The apex court also directed the Central Bureau of Investigation (CBI) to investigate possible collusion between bank officials and those accused in this case.
Investigation concerns
SC displeased with CBI's delay in investigating case
The SC has expressed its displeasure over the CBI's delay in investigating the alleged bank fraud case. The court said that it would monitor the case and asked the CBI to file a status report within four weeks. Solicitor General Tushar Mehta, representing the CBI and the Enforcement Directorate (ED), assured that all preventive measures would be taken to ensure an uninterrupted investigation.
Case registration
CBI's approach questioned
The court has questioned the CBI's approach in registering cases, saying different transactions and entities prima facie constitute distinct offenses. The bench asked why separate preliminary inquiries and regular cases weren't registered for these distinct offenses. It also stressed that the alleged role of bank officials must be investigated, rejecting the agency's submission that absence of sanction stalled further action.
Monitoring
SC rejects offer to repay outstanding dues in installments
The SC has said it will continue to monitor the investigation and seek periodic status reports from both the agencies. Senior advocate Mukul Rohatgi, appearing for Ambani, proposed a committee be formed to determine total outstanding dues and consider repayment in installments. However, the bench rejected this proposal, saying that serious economic offenses involving allegations of siphoning and forgery cannot be condoned merely on an offer to repay.
Defaults revealed
Reliance Home Finance defaulted on loans worth ₹7,523.46cr
The ED has revealed large-scale defaults by several Reliance group entities. The agency said Reliance Home Finance Ltd defaulted on loans of around ₹7,523.46 crore taken from 33 banks and financial institutions. Of these, the lenders could recover only ₹2,116.28 crore after the resolution, leaving net defaults of ₹5,407.18 crore constituting alleged proceeds of crime under the Prevention of Money Laundering Act (PMLA).
Extra
RCFL also defaulted on loans worth ₹8,226.05cr
Reliance Commercial Finance Ltd (RCFL) also defaulted on loans worth ₹8,226.05 crore taken from 21 lenders. The company could recover just ₹1,945.48 crore, resulting in alleged proceeds of crime amounting to ₹6,280.57 crore under PMLA. In the RCOM case, the ED said RCOM and its group firms had taken loans from 13 foreign banks and institutional investors and 26 Indian banks with outstanding dues totaling ₹40,185.55 crore.