The Supreme Court of India has issued fresh notices to Anil Ambani and the Reliance ADA Group in connection with a Public Interest Litigation (PIL) alleging large-scale banking and corporate fraud involving tens of thousands of crores in public funds.
On Friday, January 23, 2026, a Bench led by Chief Justice Surya Kant sought updated status reports from the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) regarding ongoing probes into alleged financial irregularities tied to the Anil Dhirubhai Ambani Group (ADAG).
The Bench directed that fresh notices be served on both Mr. Ambani and the corporate group, instructing the Bombay High Court Registrar to ensure proper service. The court observed that neither party had entered an appearance through legal counsel, remarking that this absence occurred “for reasons best known to them.”
Calling it a “last opportunity” issued “in the interests of justice,” the Bench stated that the court must now hear the response of the concerned parties before proceeding further.
PIL Seeks Court-Monitored Probe into Massive Bank Fraud
The case stems from a petition filed by E. A. S. Sarma, represented by advocate Prashant Bhushan, seeking a court-monitored, time-bound investigation into alleged fraudulent financial practices by ADAG and its promoter.
The petition calls for the formation of a Special Investigation Team (SIT) comprising officials from the CBI and ED, arguing that the probe must extend beyond corporate actors to examine the role of bank officials, regulators, and public servants.
It further urges the apex court to oversee the investigation to ensure it remains comprehensive, impartial, and insulated from political or institutional influence.
Forensic Audit Revealed Alleged Fund Siphoning, Government Says
Appearing on behalf of the Union government, the CBI, and the ED, Tushar Mehta, the Solicitor-General of India, informed the court that a forensic audit had uncovered evidence of “siphoning of funds.”
He clarified that the State Bank of India (SBI) had registered a First Information Report (FIR) with the CBI in compliance with a Reserve Bank of India (RBI) directive.
Mr. Mehta also noted that a delayed legal challenge to the forensic audit report — filed by three banks other than SBI — is currently under consideration before the Bombay High Court. While a Single Judge Bench had issued a stay order on procedural grounds, the matter is now pending before a Division Bench, with judgment reserved.
However, he clarified that there is no pending legal challenge to SBI’s official “fraud declaration.”
Notably, Mr. Mehta stated that the government does not oppose the PIL, indicating openness to judicial oversight of the investigation.
₹1.5 Lakh Crore Written Off, Shell Companies Alleged
Advocate Prashant Bhushan told the court that debts amounting to approximately ₹1.5 lakh crore were written off during bankruptcy proceedings, raising serious concerns over financial accountability.
He alleged that a complex web of fraudulent transactions was used to siphon money through shell companies, many of which were reportedly established in foreign tax havens. According to the petition, Bank of Baroda had detected suspicious transactions as early as 2020, yet the CBI registered an FIR only in June 2025.
“The unexplained five-year delay and institutional inertia point toward deeper complicity,” the petition asserted, arguing that regulators and law enforcement agencies failed to act decisively despite red flags.
Petition Alleges Regulatory Failure and Constitutional Violations
The PIL contends that the investigation has selectively targeted corporate actors while shielding bank officials, regulators, and public authorities, potentially violating Articles 14 and 21 of the Constitution, which guarantee equality before the law and the right to life and due process.
“A fraud of this magnitude, involving public money and public institutions, cannot be investigated in a piecemeal manner,” the petition argued.
It further claimed that despite alleged frauds exceeding ₹20,000 crore, searches conducted at over 35 premises, and significant forensic evidence, no arrests have been made, nor have assets been seized or accounts frozen.
Call for Structural Banking and Regulatory Reforms
Beyond seeking criminal accountability, the petition urges the Supreme Court to consider systemic reforms. It warns that repeated financial scandals within the same corporate group highlight deep-rooted failures in India’s banking and regulatory framework.
The petition proposes that the court establish an expert committee to recommend structural reforms aimed at preventing similar large-scale financial frauds in the future.
As the Supreme Court awaits responses from ADAG and Mr. Ambani, the case is expected to become a landmark test of corporate accountability, regulatory oversight, and institutional integrity in India’s financial system.
