New Delhi, Nov 19 (NationPress) The Supreme Court has expressed serious concerns regarding the approach taken by various investigative agencies in their probe of alleged financial “illegalities” tied to Indiabulls Housing Finance Limited (IHFL), which has now been rebranded as Sammaan Capital Ltd.

A Bench led by Justices Surya Kant and Joymalya Bagchi showed its deep concern over the sluggish and inconsistent actions of the Central Bureau of Investigation (CBI), the Ministry of Corporate Affairs (MCA), and the Securities and Exchange Board of India (SEBI), despite the serious nature of the allegations presented in a pending petition by the Citizens Whistle Blower Forum (CWBF).

The Justice Kant-led Bench noted that the central agencies appeared to lack the eagerness to advance the investigation, expressing worry about the progress being made. It emphasized that SEBI, in particular, needs to avoid “double standards” and act decisively regarding suspected financial irregularities that could harm investors.

The Bench further stated that SEBI holds full authority to investigate the claims and should proceed without delay. It urged the CBI to move past preliminary investigations, questioning why no FIR has been registered thus far. Filing an FIR would allow the Enforcement Directorate (ED) to thoroughly investigate the money-laundering implications of the allegations.

During the proceedings, the ED assured the Supreme Court of plans to hold a joint coordination meeting with the CBI, SEBI, and the Serious Fraud Investigation Office (SFIO) within two weeks. The CWBF is seeking a comprehensive and timely investigation by a Special Investigation Team (SIT) into various serious “illegalities”, including the round-tripping of funds, breaches of the Companies Act, and the siphoning of funds by the promoters of Indiabulls Housing Finance, its subsidiaries, and their promoters.

The petition alleges that several firms receiving substantial loans from Indiabulls had minimal paid-up capital, overlapping directors, shared office locations, and lacked genuine business activities.

In a prior hearing, senior advocates Harish Salve and Mukul Rohatgi, representing the promoters, dismissed the allegations as “fictitious”, while the CBI had earlier informed the court that it found no wrongdoing in IHFL’s loan disbursal practices.

The Supreme Court has mandated that authorities, including the CBI, ED, SEBI, and SFIO, submit their reports by December 17, which is the next scheduled hearing date.

In light of the Supreme Court’s critical remarks, the stock of Sammaan Capital closed at Rs 158.40 on Wednesday, declining by Rs 24.36 or 13.33 percent. In a statement, senior advocate Mukul Rohatgi, representing Sammaan Capital, clarified, “The current petition before the Supreme Court does not level any allegations against Sammaan Capital.”

The Court acknowledged concerns regarding former promoter Sameer Gehlaut, who no longer holds any shares or involvement with the company. The Court has clarified that it has made no judgments regarding the merits of these allegations and has merely allowed authorities to re-evaluate the situation.

“We are fully open to any inquiry the agencies wish to conduct — whether once, twice, or even thrice. We have nothing to conceal,” he added in the statement.