SC seeks replies from Centre, CBI, ED and Anil Ambani on plea alleging massive fund diversion at RCom

The Supreme Court on Tuesday issued notices to the Union government, Central Bureau of Investigation (CBI), Enforcement Directorate (ED) and former promoter of Reliance Communications (RCom) Anil Ambani on a plea seeking a court-monitored probe into alleged fund diversion and financial irregularities at the company and its group entities.

A bench of Chief Justice B.R. Gavai and justice Vinod Chandran asked all respondents to file their replies within three weeks.

The PIL, filed by former Union secretary E.A.S. Sarma and reviewed by Mint, alleges diversion of bank loans running into tens of thousands of crores through complex internal transactions, manipulated accounts, use of shell entities and delayed fraud classification by lenders.

It also says banks delayed declaring the accounts as fraud despite having forensic audit reports, raising concerns about oversight by lenders and regulators.

Sarma has alleged that the wrongdoing persisted for more than a decade, pointing to institutional lapses at several levels.

Appearing for Sarma, advocate Prashant Bhushan told the court the case concerns “probably the largest corporate fraud in India’s history.”

He said the FIR was filed only in 2025 despite forensic reports and bank findings dating back to 2007–08, arguing that the delay underlines the need for a court-monitored investigation. Bhushan also sought status reports from the CBI and ED on their actions so far.

Queries mailed to the Reliance Communications spokesperson seeking a response on the Supreme Court issuing notice remained unanswered till press time.

What the court said

When the Bench asked whether the respondents (the Union government, CBI, ED and Anil Ambani) had been served copies of the petition, Bhushan said the petitioner was also asking for status reports from both the CBI and ED on steps taken so far.

The court then issued notice and said it would hear the matter again after the replies are filed. Depending on what the agencies submit, the court may consider ordering a monitored probe.

What the PIL seeks

The petition demands a Supreme Court-monitored investigation covering forensic audit material, insolvency records and other documents.

It seeks inquiries under the Indian Penal Code (IPC), the Prevention of Corruption Act (PCA), the Prevention of Money Laundering Act (PMLA), the Foreign Exchange Management Act (FEMA), the Companies Act, the Securities and Exchange Board of India Act (Sebi Act), the Reserve Bank of India’s prudential norms (RBI norms), and the Insolvency and Bankruptcy Code (IBC).

Ongoing investigations

This PIL comes at a time when several Reliance Group companies linked to Anil Ambani are already under scrutiny. The CBI recently searched locations in Mumbai in a separate loan fraud case involving RCom. The ED has also widened its money-laundering probe and raided more than 35 premises linked to over 50 group companies in July 2025.

By November 2025, the ED had frozen assets worth ₹3,084 crore and attached 132 acres of land in Navi Mumbai valued at ₹4,462 crore, citing suspected laundering of bank loan proceeds.

RCom entered bankruptcy in May 2019.

Reliance Communications’ response

A spokesperson for Reliance Communications, responding to Mint, referred to the company’s 30 October statement issued after similar allegations were published by investigative portal Cobrapost, which had claimed a ₹41,921-crore financial fraud through diversion of funds across group entities since 2006.

At the time, the Reliance Group had said:"Corporate rivals appear to be orchestrating this alleged exercise with the malicious intent to tarnish the reputation of Reliance Infrastructure Limited, Reliance Power Limited, Anil D. Ambani and one of the largest family of over 55 lakh shareholders. Their underlying motive is to influence public perception and manipulate market sentiment to serve their own vested commercial interest.”

"Cobrapost’s sudden revival is fully funded by entities with direct commercial interest in acquiring Reliance Group assets. Malicious campaign aimed at crashing stock prices and triggering panic in stock markets to acquire Reliance Group assets. Recycling of old information already examined by CBI, ED, SEBI and other agencies. An organised attempt to prejudice a fair trial.”