The Supreme Court on Friday expressed concern over significant delays in investigating a major bank fraud case linked to Reliance Communications and Industrialist Anil Ambani, directing the Central Bureau of Investigation (CBI) and Enforcement Directorate (ED) to submit detailed status reports on their probes. A bench headed by Chief Justice of India Surya Kant and Justice Joymalya Bagchi issued the directive while hearing a petition filed by former Union Secretary E A S Sarma, who has sought judicial supervision to ensure a thorough and impartial investigation.

The case revolves around allegations that Reliance Communications and associated group entities secured massive loans from a consortium of public sector banks, only to default later, resulting in write-offs estimated at over Rs 1.5 lakh crore. Irregularities were first flagged by Bank of Baroda during an audit in 2020, which pointed to suspected diversion and misuse of funds. Despite these early red flags, a formal criminal case was registered only in June 2025—prompting sharp criticism over the pace of enforcement action.

Senior advocate Prashant Bhushan, appearing for the petitioner, argued before the court that the alleged fraud was far more extensive and complex than previous high-profile corporate cases. He highlighted the five-year gap between the initial audit findings and FIR registration, questioning the effectiveness and seriousness of the probes. Bhushan further pointed out that the FIR does not name any public servants, raising doubts about whether the full chain of responsibility—including how such large-scale irregularities were permitted—has been adequately examined.

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The petitioner has urged the Supreme Court to monitor the investigations closely, citing the enormous public money involved and the need for accountability at all levels. The bench, acknowledging the gravity of the matter, asked both CBI and ED to place on record the steps taken so far in their respective probes. The case is likely to return for further hearing once the agencies file their compliance reports.

The development comes amid ongoing scrutiny of large corporate loan defaults in India and renewed focus on the role of investigative agencies in high-stakes financial fraud cases involving significant taxpayer funds.

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