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, the Central Bureau of Investigation (CBI), the Enforcement Directorate (ED) and former promoter of Reliance Communications (RCom) Anil Ambani seeking a court-monitored probe into allegations of diversion of funds and financial irregularities in the company and its group entities.
A bench comprising Chief Justice BR Gavai and justice Vinod Chandran asked all respondents to submit their responses within three weeks.
PIL filed by former Union secretary EAS Sarma and examined by MintIt alleges that bank loans running into tens of thousands of billions were diverted through complex internal transactions, manipulated accounts, use of shell assets, and delay in fraud classification by lenders.
It also notes that banks have been slow to declare accounts fraudulent despite forensic audit reports, raising concerns about oversight by lenders and regulators.
Sarma cited institutional failures at various levels, claiming that the misconduct continued for more than a decade.
Advocate Prashant Bhushan, who appeared on behalf of Sarma, told the court that the case concerned “probably the largest corporate fraud in the history of India”.
He stated that despite forensic reports and bank findings dating back to 2007-08, the FIR was lodged only in 2025, arguing that the delay underlined the need for a court-monitored investigation. Bhushan also sought status reports from CBI and ED on their actions so far.
Questions sent to the Reliance Communications spokesperson seeking answers regarding the Supreme Court’s issuance of notice remained unanswered till press time.
What did the court say
When the bench asked whether the respondents (Union government, CBI, ED and Anil Ambani) had been given copies of the petition, Bhushan said the petitioner had also sought status reports from both CBI and ED on the steps taken so far.
The court later issued a notice and said it would take up the matter again after submission of replies. Depending on the information provided by the institutions, the court may order a monitored investigation.
What PIL is looking for
The petition requests a Supreme Court-monitored investigation involving forensic audit materials, bankruptcy records and other documents.
It seeks investigations under the Indian Penal Code (IPC), Prevention of Corruption Act (PCA), Prevention of Money Laundering Act (PMLA), Foreign Exchange Management Act (FEMA), Companies Act, Securities and Exchange Board of India Act (Sebi Act), prudential norms of the Reserve Bank of India (RBI norms) and Insolvency and Bankruptcy Code (IBC).
ongoing investigations
This PIL comes at a time when many Reliance Group companies linked to Anil Ambani are already under scrutiny. The CBI recently probed locations in Mumbai in a separate loan fraud case involving RCom. ED also expanded its money laundering investigation and raided more than 35 facilities linked to more than 50 group companies in July 2025.
As of November 2025, the ED’s assets were frozen. ₹3,084 crore and attached land value of 132 acres in Navi Mumbai ₹4,462 crore due to suspicion of laundering of bank loan proceeds.
RCom entered bankruptcy in May 2019.
Reliance Communications’ response
Reliance Communications spokesperson responds MintHe referred to the company’s statement published on October 30, after similar allegations were published by investigative portal Cobrapost. ₹41,921 crore financial fraud through diversion of funds among group companies since 2006.
At the time, Reliance Group had said: “Corporate rivals appear to be orchestrating this alleged practice with malicious intent to tarnish the reputation of Reliance Infrastructure Limited, Reliance Power Limited, Anil D. Ambani and one of the largest families comprising over 55 lakh shareholders. Their primary aim is to influence public perception and manipulate market sentiment to serve their own business interests.”
“Cobrapost’s sudden revival is entirely funded by entities with direct business interest in acquiring Reliance Group assets. A malicious campaign aimed at depressing stock prices and triggering panic in stock markets to acquire Reliance Group assets. Recycling of old information already vetted by CBI, ED, SEBI and other agencies. An organized attempt to undermine a fair trial.”
