The Supreme Court on Wednesday came down sharply on the Enforcement Directorate (ED) for what it described as an “unexplained delay” in probing the alleged bank loan fraud involving Anil Dhirubhai Ambani Group (ADAG) companies, with the amount in question estimated at over Rs 40,000 crore.
A bench of the apex court questioned why the agency had taken years to meaningfully pursue the matter despite the scale and seriousness of the allegations, observing that such delays undermine public confidence in the investigative process. The court noted that large-value economic offences have far-reaching consequences for the banking system and the economy, and therefore demand prompt and decisive action. It sought a clear explanation from the ED on the timeline of its investigation and the steps taken so far.
The case relates to alleged irregularities in bank lending to several ADAG-linked entities, with accusations that loans were sanctioned and diverted in violation of established norms. The ED has registered cases under the Prevention of Money Laundering Act (PMLA) based on predicate offences linked to bank fraud and other financial irregularities.
During the hearing, the court also underscored the need for accountability in handling high-profile economic offence cases, stating that agencies cannot remain passive once credible information pointing to large-scale wrongdoing emerges. The bench indicated that prolonged inaction could invite closer judicial scrutiny.
The matter is expected to be heard again after the ED places on record a detailed status report explaining the reasons for the delay and outlining the future course of the investigation.
