Supreme Court Refuses to Order Anil Ambani's Arrest in Rs 40,000-Crore Fraud Probe

The Supreme Court on Monday categorically refused to issue any directive for the arrest of businessman Anil Ambani in connection with the alleged Rs 40,000-crore Anil Dhirubhai Ambani Group (ADAG) loan fraud case.

A bench comprising Chief Justice of India Surya Kant, Justice Joymalya Bagchi, and Justice V Mohana stated that it would not be fair for the top court to order the arrest of any specific individual while independent central investigations are legally active.

The remarks came during the hearing of a Public Interest Litigation (PIL) filed by former bureaucrat EAS Sarma, which seeks a thorough, court-monitored probe into alleged financial irregularities within the corporate group.

Bhushan Questions Non-Arrest of Alleged 'Kingpin'

Representing the petitioner, advocate Prashant Bhushan argued before the bench that the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) were shielding top corporate executives. Bhushan claimed that probe agencies had only arrested "lowly officers" while leaving Anil Ambani untouched, despite a Securities and Exchange Board of India (SEBI) report previously classifying him as the primary mastermind behind specific infractions.

"If the facts are these, that the SEBI says he was the kingpin... how do I come to know whether they have investigated it in the correct manner or not?" Bhushan asked the court, requesting that the filed chargesheets be produced directly to the bench to verify the scope of the probe.

Countering the claim, Solicitor General Tushar Mehta informed the court that the investigation was not restricted to low-level staff, confirming that ADAG's Managing Director had already been placed under arrest.

Defense Objects to Prejudicial Procedures

Defending Ambani, Senior Advocate Kapil Sibal strongly objected to the petitioner's push to examine the chargesheets before the Supreme Court, arguing that such a step deviates entirely from standard legal criminal procedure.

"That comment itself will cause prejudice to us. Once chargesheet is filed, cognizance is yet to be taken. This is not the procedure this court has ever followed," Sibal contended.

Acknowledging the sensitivity of corporate legal reputations, CJI Surya Kant reassured the defense: "We are also over conscious that nothing should come from our side which can prejudice the parties." Ultimately, the bench refrained from recording any observations regarding the checking of individual roles within its final daily order.

Probes Fast-Tracked After Insolvency Misuse Concerns

The ongoing case revolves around serious allegations that corporate debts worth thousands of crores were systematically stripped down. In earlier hearings, the Supreme Court highlighted an ED report revealing that debts worth Rs 2,983 crore belonging to certain ADAG companies were settled during insolvency proceedings for a mere Rs 26 crore through an entity configuration codenamed "Project Help."

CJI Kant had previously raised concerns over the potential misuse of the Insolvency and Bankruptcy Code (IBC) process, flagging rising instances where bankrupt entities allegedly auction high-value assets back to family members or close friends at severely undervalued rates.

The central government confirmed that the investigative machinery is working rapidly, with the CBI filing three chargesheets and the ED executing four prosecution complaints. The Supreme Court has taken the latest multi-agency status reports on record and has re-listed the matter for subsequent hearings.

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