Industrialist Anil Ambani has assured the Supreme Court of India that he will not leave the country without prior permission as investigations continue into alleged large-scale bank fraud involving Reliance Communications Ltd (RCOM) and its group companies. This assurance comes amid scrutiny of financial dealings at RCOM, with authorities examining potential irregularities in loan disbursements and fund diversions. The case centers around allegations of a ₹31,580 crore (approximately $3.8 billion USD as of February 19, 2026) loan secured between 2013 and 2017 from a consortium of banks led by State Bank of India.
The commitment was formally submitted to the court through a compliance affidavit in response to a public interest litigation filed by EAS Sarma, a former secretary to the Government of India. This legal challenge argues that the scale of the alleged fraud warrants greater judicial oversight, particularly given the significant amount of public funds involved. The ongoing investigations, led by the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI), have focused on potential violations of the Prevention of Money Laundering Act, 2002.
The Supreme Court had previously recorded a statement on February 4 from Ambani’s counsel, Senior Advocate Mukul Rohatgi, indicating his client’s willingness to remain in India pending the outcome of the investigations. The recent affidavit serves to formally reiterate that pledge. Ambani has stated he has not traveled outside India since July 2025, when the current investigations began and has no immediate plans to do so. Should the need for international travel arise, he has undertaken to seek the Court’s explicit approval beforehand.
Allegations of Fund Diversion and ‘Evergreening’ of Loans
According to the petition filed by EAS Sarma, a forensic audit commissioned by State Bank of India revealed concerning patterns in the financial transactions of RCOM, Reliance Infratel, and Reliance Telecom. The audit allegedly uncovered evidence of funds being diverted for purposes other than those originally intended, including repaying unrelated debts, transferring money to connected entities, and making temporary investments that were quickly liquidated. The petition further alleges that these actions were potentially aimed at “evergreening” loans – a practice where existing loans are refinanced to appear as novel loans, masking underlying financial distress.
Ambani, however, has clarified his role within these companies, stating that he served solely as a non-executive director and was not involved in the day-to-day operations or management decisions. This distinction is central to his defense, as he seeks to distance himself from the alleged fraudulent activities. His cooperation with the ED, including providing a statement under Section 50 of the Prevention of Money Laundering Act, 2002, is ongoing.
Supreme Court Directs SIT and CBI Probe
Responding to the gravity of the allegations, the Supreme Court on February 4 directed the Enforcement Directorate to establish a Special Investigation Team (SIT) to thoroughly examine the claims of financial irregularities. Simultaneously, the court instructed the Central Bureau of Investigation (CBI) to investigate potential collusion between bank officials and individuals associated with RCOM in facilitating the alleged fraud. This dual-pronged approach signals the court’s commitment to a comprehensive investigation.
The petitioner, EAS Sarma, contends that the initial First Information Report (FIR) registered by the CBI on August 21, 2025, and the subsequent proceedings by the ED, only address a portion of the alleged wrongdoing. Sarma’s petition argues that the roles of bank officials and regulatory bodies have not been adequately scrutinized, despite the findings of forensic audits and independent reports. He maintains that judicial supervision is crucial to ensure a fair and transparent investigation, given the substantial public funds at stake.
Timeline of Key Events
- 2013-2017: RCOM and its subsidiaries secure loans totaling ₹31,580 crore from a consortium of banks led by SBI.
- August 21, 2025: The Central Bureau of Investigation (CBI) registers an FIR related to the alleged bank fraud.
- February 4, 2026: The Supreme Court records an assurance from Anil Ambani’s counsel that he will not leave India without permission and directs the ED to form an SIT.
- February 19, 2026: Anil Ambani formally submits an undertaking to the Supreme Court reiterating his commitment to remain in India and cooperate with investigators.
The case highlights the complexities of financial crime and the challenges of holding individuals and institutions accountable for alleged wrongdoing. The Supreme Court’s intervention underscores the importance of judicial oversight in matters involving significant public funds and potential breaches of trust. The ongoing investigations by the ED and CBI, coupled with the SIT’s examination of the evidence, will be critical in determining the extent of the alleged fraud and identifying those responsible.
The next scheduled development in this case is the ongoing recording of Ambani’s statement under Section 50 of the Prevention of Money Laundering Act, 2002, as proceedings continue before the Supreme Court. Further updates will likely be provided as the SIT and CBI investigations progress.
This is a developing story. Readers are encouraged to share their perspectives and engage in constructive dialogue in the comments section below.
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