New Delhi, Feb 4 (NationPress) The Supreme Court raised significant concerns on Wednesday regarding an "unexplained delay" by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) in their investigation of alleged widespread bank loan frauds associated with Reliance Communications Ltd (RCOM), its affiliated companies, and its promoter Anil Ambani. This situation involves public funds estimated at Rs 40,000 crore.

A Bench led by Chief Justice of India (CJI) Surya Kant instructed the ED to form a Special Investigation Team (SIT) composed of senior officials and mandated both agencies to bring the ongoing investigation to a "logical conclusion" within a specified timeframe.

During the proceedings, senior advocate Mukul Rohatgi, representing Anil Ambani, assured the court that his client would not leave the country without prior consent from the apex court. This assurance was made due to concerns expressed during the hearing that the primary accused could potentially flee India prior to the investigation's conclusion.

While clarifying that it was not issuing any coercive or severe orders at this juncture, the Bench, which also included Justices Joymalya Bagchi and Vipul M. Pancholi, noted that the scale of the alleged misappropriation of public funds necessitated a timely inquiry.

“We anticipate that the agencies will act independently and with urgency. Today, we are not issuing any severe orders,” the Supreme Court remarked, directing the ED and the CBI to submit comprehensive status reports within four weeks detailing their investigative progress.

After reviewing a sealed report from the CBI, the CJI Kant-led Bench learned that a formal FIR had been lodged based on a complaint from the State Bank of India (SBI), and that similar accounts at other banks are also being examined.

Nonetheless, the Supreme Court questioned why only a single FIR had been filed despite multiple complaints from various lenders, emphasizing that each complaint represents a distinct transaction that requires separate investigation.

The Supreme Court also instructed the CBI to investigate the actions of bank officials to determine if any financial services were granted due to collusion or conspiracy involving the banks, public officials, and the accused parties.

While representing the ED and the CBI, Solicitor General Tushar Mehta stated that the ED had uncovered evidence of fraudulent bank guarantees, indicated that an ECIR had been filed against RCOM, and that the investments made by Yes Bank in 2017 in Reliance Commercial Finance Ltd (RCFL) and Reliance Home Finance Ltd (RHFL) were under scrutiny.

Advocate Prashant Bhushan, representing the petitioner, argued that despite the scale of the alleged fraud, the "kingpin" remains unapprehended.

He asserted that the enormity of the alleged misappropriation, amounting to tens of thousands of crores, necessitates a vigorous, independent, and prompt response. Conversely, senior advocate Rohatgi refuted the allegations of misappropriation and claimed that Anil Ambani's Reliance Group has been actively working to settle its debts and that legitimate business defaults should not be criminalized.

This hearing occurred against the backdrop of recent actions taken by the ED under the Prevention of Money Laundering Act (PMLA), which has provisionally seized assets valued at approximately Rs 1,885 crore belonging to Anil Ambani’s Reliance Group in relation to the RCOM, RCFL, RHFL, and Yes Bank fraud cases, raising the total attachment in group cases to nearly Rs 12,000 crore.

Last week, the ED also detained former RCOM director Punit Garg, accusing him of channeling illicit funds to offshore entities and personal expenses. The Supreme Court stated that the case would be revisited in four weeks, once status reports from the ED and the CBI are presented.