The Supreme Court on Tuesday, 28 July came down heavily on the Central Bureau of Investigation (CBI) and the Delhi Police's Economic Offences Wing (EOW) for failing to make meaningful progress in the investigation into alleged financial irregularities at Indiabulls Housing Finance Limited (IHFL), now renamed Sammaan Capital Ltd. A bench led by Chief Justice of India Surya Kant, along with Justice Joymalya Bagchi and Justice V. Mohana, expressed sharp dissatisfaction that neither agency had updated the court on the status of the probe or the steps taken toward registering a regular case.

What the Supreme Court Said

The bench was pointed in its criticism, questioning why the investigating agencies had been unable to determine whether any criminal offence was made out despite examining the matter for several months. CJI Kant observed from the bench: 'What has CBI done from January to July? We don't want to hold an investigation against innocent people. Let them have the courage to say because money returned, no offence is made out.'

The court added that it was inclined to summon the heads of the CBI and the EOW for non-compliance with earlier directions, but held back after the Centre's law officer gave an assurance that a comprehensive status report would be filed.

What the Agencies and Petitioner Argued

Additional Solicitor General S.V. Raju, representing the CBI, submitted that the investigation was ongoing and that the Serious Fraud Investigation Office (SFIO) had also commenced its own probe. He sought two weeks to obtain instructions and place a detailed status report before the court. The bench recorded this assurance and deferred the next hearing accordingly.

Advocate Prashant Bhushan, appearing for the petitioner Citizens Whistle Blower Forum (CWBF), told the court that the CBI's own affidavit filed in January had referenced findings by the Enforcement Directorate (ED) and the Securities and Exchange Board of India (SEBI) that allegedly pointed to siphoning of funds. He further noted that the Delhi Police EOW had already registered certain FIRs, and that the CBI was reportedly considering clubbing five cases flagged by the ED with the Yes Bank investigation. Bhushan also informed the court that a former Indiabulls promoter had relocated to London, and reiterated the plea for a court-monitored Special Investigation Team (SIT).

Senior advocates Mukul Rohatgi, Abhishek Manu Singhvi, and Nalin Kohli, appearing for the respondents, denied any wrongdoing.

What the Petition Alleges

The CWBF petition seeks a court-supervised SIT probe into alleged financial irregularities at the erstwhile Indiabulls Housing Finance Ltd, now Sammaan Capital Ltd, and its subsidiaries. The allegations include round-tripping of funds, violations of the Companies Act, and siphoning of money by the company's promoters.

The plea contends that several companies which received substantial loans from the housing finance firm had negligible paid-up capital, common directors, overlapping registered addresses, and no genuine business operations — and that the funds were ultimately routed back to entities linked to the promoters.

Background and Pattern of Judicial Concern

This is not the first time the Supreme Court has expressed frustration over the pace of this investigation. In November last year, the apex court pulled up the CBI, SEBI, and the Ministry of Corporate Affairs for adopting what it described as a 'friendly approach' toward the allegations. At that time, the court had asked SEBI to avoid 'double standards', questioned the CBI's failure to register an FIR, and directed the ED and SFIO to coordinate and submit status reports. Tuesday's hearing suggests those directions have yielded limited results.

With the court now threatening to summon agency heads and the SFIO probe reportedly underway, the next status report — due in two weeks — will be closely watched for signs of concrete action.