SC Demands SIT in RCOM Fraud Probe, Anil Ambani Faces Scrutiny

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AuthorRiya Kapoor|Published at:
SC Demands SIT in RCOM Fraud Probe, Anil Ambani Faces Scrutiny
Overview

The Supreme Court has ordered the Enforcement Directorate (ED) to form a Special Investigation Team (SIT) to expedite the probe into allegations of a massive ₹1.78 lakh crore bank fraud involving Reliance Communications (RCOM) and Anil Ambani. The court expressed dissatisfaction with the investigation's pace by the ED and CBI, demanding faster resolution and periodic updates. Anil Ambani's counsel provided an undertaking that he would not leave the country. The CBI is also directed to investigate potential collusion by bank officials. This escalation intensifies scrutiny on the Anil Ambani group, which is already under extensive ED action with over ₹12,000 crore in assets attached across group entities.

Judicial Overhaul: Supreme Court Mandates SIT in RCOM Fraud Probe

The Supreme Court's directive for a dedicated Special Investigation Team (SIT) marks a significant escalation in the judicial oversight of alleged large-scale bank fraud linked to Reliance Communications (RCOM) and its associated entities, involving an estimated ₹1.78 lakh crore. The apex court expressed explicit concern over the "unexplained delay" by both the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) in progressing the investigation, stressing the need for it to reach a "logical conclusion." The ED has been tasked with forming the SIT, comprising senior officers, to pursue the probe with urgency. Anil Ambani's legal team provided an undertaking to the court that he will not depart from India without explicit permission, a move prompted by past concerns about his potential flight. The court's order also mandates the CBI to investigate any potential collusion by bank officials in the sanctioning and release of funds, aiming to uncover possible institutional complicity.

Deepening Financial Scrutiny and Group-Wide Impact

The judicial intervention comes amidst a backdrop of intense regulatory action against the Anil Ambani group. The ED has already attached assets worth approximately ₹12,000 crore across various group companies, including RCOM, Reliance Home Finance Ltd (RHFL), and Reliance Commercial Finance Ltd (RCFL), as part of its money laundering investigations. These actions are rooted in allegations of "fraudulent diversion" of public money amounting to tens of thousands of crores [5, 6, 14]. The Enforcement Directorate has registered multiple Enforcement Case Information Reports (ECIRs) under the Prevention of Money Laundering Act (PMLA) concerning RCOM, Reliance Home Finance, Reliance Commercial Finance, and Reliance Power, with investigations also covering Foreign Exchange Management Act violations [14]. Recently, former RCOM director Punit Garg was arrested on January 29, 2026, in connection with an alleged ₹40,000 crore bank fraud and money laundering case, with probes detailing diversion of proceeds to offshore entities and fraudulent sale of assets [3, 7, 15, 34]. The petitioner's counsel highlighted a substantial delay between the CBI registering an FIR in August 2025 and the first arrest only occurring recently, underscoring the court's impatience [Source A].

Insolvency Context and Market Perception

RCOM itself is entangled in prolonged Corporate Insolvency Resolution Proceedings (CIRP) [13, 17]. Its shares were suspended from trading in August 2022 as part of the insolvency process [10]. The broader Anil Ambani group faces significant financial headwinds, with entities like Reliance Infrastructure and Reliance Power experiencing substantial share price declines and increased regulatory scrutiny, including being placed under Additional Surveillance Measures by stock exchanges [13, 19, 22, 28]. Several banks, including Bank of Baroda, State Bank of India, and Bank of India, have classified RCOM's loan accounts, and Anil Ambani's, as fraudulent due to alleged fund misuse [13, 31, 35]. The cumulative effect of these ongoing investigations, asset attachments, and previous financial defaults paints a complex picture of systemic financial distress within the group. The judicial demand for a swift and thorough investigation, coupled with travel restrictions on Mr. Ambani, signals an increased risk of further asset freezes or legal actions that could impede any ongoing restructuring or recovery efforts for lenders and stakeholders across the group's entities.

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