SC asks CBI to take final call on Indiabulls probe
The Supreme Court on Wednesday directed the Central Bureau of Investigation (CBI) to take a final call for probing the dubious financial transactions involving Indiabulls Housing Finance Limited
The Supreme Court on Wednesday directed the Central Bureau of Investigation (CBI) to take a final call for probing the dubious financial transactions involving Indiabulls Housing Finance Limited (IHFL, now Sammaan Capital) even as the Delhi Police claimed it has already registered a criminal case in this regard.
Insisting upon a response from the CBI director to submit a fresh affidavit by the second week of January, a bench of Chief Justice of India (CJI) Surya Kant and justice Joymalya Bagchi said, “We direct the CBI director to take a final call within one week and submit a fresh affidavit on the date fixed.”
The order came in a public interest litigation (PIL) filed by a non-profit body Citizens Whistleblowers Forum which relied upon an investigation conducted by the Securities Exchange Board of India (SEBI) showing dubious transactions by the former IHFL promoters alleged to be quid pro quo for the loans given to several corporate entities.
It was their claim that the ministry of corporate affairs (MCA) refused to take up the matter further even as the Enforcement Directorate (ED) told the court in these proceedings that a case for investigation was clearly made out. Although ED approached the Delhi police in the past to register a first information report (FIR), the same was refused and in the absence of a predicate offence, ED was handicapped to take up probe on the money laundering aspect.
On Wednesday, the Delhi Police’s Economic Offences Wing (EOW) informed the top court that a FIR was registered on December 15 based on the complaint received by ED. An affidavit by Delhi Police disclosed this by saying, “After examination of prima facie material in the said complaint, EOW has registered FIR no 175/25 dated 15.12.2025 under Sections 420,406,120B IPC at police station EOW which is presently under investigation.”
The ED had sent the complaint on December 4 following an order passed by the top court on November 19 asking multiple investigating agencies, including CBI and ED, to hold a meeting within two weeks and examine if sufficient material exists to lodge a FIR in the matter. It had even authorised creation of a special investigation team (SIT) in the event a case was made out.
The ED is entitled to share information with an investigation agency under section 66(2) of the prevention of money laundering act, 2002 (PMLA). In the present case, it wrote to the police about the fraud, criminal conspiracy in the quid pro quo transactions by and between Sameer Gehlaut (former promoter of IHFL) and the corporate groups namely being Americorp Group, Reliance ADAG, DLF Group, Vatika Group, Choradia Group which had borrowed money from IHFL, the affidavit said.
The CBI too filed a short affidavit in court stating that relevant records have been received from SEBI, ministry of corporate affairs, National Housing Bank (NHB), RBI and ED and the same were under scrutiny.
It further informed the court that a meeting of all investigating agencies was held on December 2 while the fresh complaint by ED was received only on December 15. “The said complaint is being examined by the CBІ vis-à-vis the allegations levelled in the FIR registered by Delhi Police and the alleged offences as disclosed in the said complaint shall be brought to its logical end, in due course,” the affidavit filed by CBI superintendent of police Anil Kumar Yadav said.
The bench expressed surprise why CBI took so much time in gathering details despite its previous order. “We do not want to comment on what the agency was doing from December 2 (when the joint meeting was held) and December 16 (filing of the present affidavit),” the order by the court said.
The CBI affidavit further indicated that investigation against IHFL has already commenced as it has “reliably learnt” about the Delhi Police’s FIR. “The ED can now commence its investigation in the matter on the basis of the predicate offence registered by Delhi Police. Thus, investigation into the affairs of M/s IHFL has already commenced,” the CBI said.
Additional solicitor general (ASG) SV Raju who appeared for the Delhi Police informed the bench that officers from the EOW were present in court and should be exempted from appearance on the next date as the FIR has been registered. However, the bench said, “We are eagerly waiting for the next compliance affidavit,” clearly suggesting that the heat will be on Delhi Police to indicate what it has done between now and the next date of hearing.
Advocate Prashant Bhushan appearing for the petitioner body along with advocate Neha Rathi pointed out that RBI has issued a circular which mandates all bank frauds above ₹50 crore has to be investigated.
Senior advocate Harish Salve appearing for Sammaan Capital (formerly IHFL) denied any bank fraud by the company. “There is no bank fraud of a single rupee. There is zero loss. These are completely wrong allegations based on nonsensical claims,” Salve said. He was supported by senior advocate Abhishek Manu Singhvi, also appearing for the company, who said, “The CBI affidavit makes it clear that ED investigation may continue. Now that is the end of the matter. The FIR stands registered. Investigation cannot be a subject matter of monitoring by the court.”
The PIL pointed out that the SEBI findings of February 22, 2022 against IHFL were “shocking” as it showed how dubious loans were paid by IHFL to companies with net worth less than ₹1 crore that got routed back to companies held by Gehlaut.
The CBI had in an earlier affidavit, filed in these proceedings, told the court that in absence of any prima facie criminal act being disclosed from the material in the transactions of IHFL with public sector or private banks or any such report by such banks, “CBI is unable to take up investigation into the affairs of M/s IHFL.” However, it had said that the allegations prima facie disclosed money laundering aspect which may be probed by ED.
