The Enforcement Directorate (ED) has flagged serious irregularities in the financial transactions of Indiabulls Housing Finance Ltd (IHFL), now known as Sammaan Capital Ltd, to the Supreme Court. The Supreme Court is currently probing dubious loans disbursed by IHFL to corporate entities.

A bench of Justices Surya Kant, Ujjal Bhuyan, and N K Singh directed the Ministry of Corporate Affairs (MCA) to produce the original records of the cases where Securities and Exchange Board of India (SEBI) had pointed out irregularities. The court is seeking to understand why the MCA had closed or compounded the irregularities that SEBI found. The bench questioned the Additional Solicitor General S V Raju, appearing for central investigating agencies, about how many cases were closed and stated, "We would like to see in how many cases you have been so magnanimous in closing 100s of objections". The court has scheduled the next hearing for November 19 and has asked a responsible officer from MCA to remain present with the original files of IHFL.

The ED has been directed to clarify its stance on probing alleged money laundering charges against IHFL, especially after the CBI filed an affidavit in July indicating that no case was made out for its probe. The bench stated, "We direct ED to categorically clarify its stand with regard to observations made in the CBI affidavit to the effect that allegations disclose money laundering aspect on which ED may continue its probe". The ED is also expected to explain the steps taken by it following the CBI's request to register a case with the Economic Offences Wing (EoW) of Delhi.

The court's scrutiny arose from a public interest litigation filed by the non-profit organization, Citizens Whistleblowers Forum. Prashant Bhushan, representing the NGO, attempted to detail the alleged surreptitious activities of IHFL in conspiracy with various realtors and banks. Bhushan argued that IHFL had extended massive loans to shell entities and diverted funds back into promoter-linked firms and that these allegations were supported by affidavits from SEBI. He explained that one company with a net worth of ₹1 lakh was given a loan of ₹1,000 crore. Bhushan also stated that IHFL, now known as Sammaan Capital, has given some ₹400 crores of loans to many of these companies and that Sameer Gehlaut, founder and chairman of IHFL, had fled the country and is living in London.

Senior advocate Harish Salve, appearing for Indiabulls, dismissed the case as "blackmail litigation" and stated that the petition was a "cut-paste of another similar petition which was dismissed by the Delhi HC". Salve contended that the entire loan amount advanced has been recovered and that seven agencies had investigated the cases against IHFL and given it a clean chit. A M Singhvi also supported this claim.

The Securities and Exchange Board of India (SEBI) had previously reported irregularities, stating that IHFL had sanctioned loans to entities with negative or negligible net worth. SEBI's report also noted that companies related to Sameer Gehlaut had negligible revenues from operations.