SC Surprised by CBI 'Friendly' Approach in Indiabulls Probe

The Supreme Court (SC) has expressed its surprise and concern regarding the Central Bureau of Investigation's (CBI) seemingly lenient approach in investigating allegations of financial irregularities involving Indiabulls Housing Finance Ltd (IHFL), now known as Sammaan Capital Ltd. A bench of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh voiced their disapproval of the CBI's "cool and friendly" attitude, a stance they found unusual in cases involving alleged misuse or siphoning of public funds.

The court's remarks came during a hearing prompted by a petition from the NGO Citizens Whistle Blower Forum, represented by advocate Prashant Bhushan. The NGO raised concerns about dubious transactions and corporate governance irregularities within IHFL. The Supreme Court has directed the CBI director to hold a joint meeting with senior officials from the Securities and Exchange Board of India (SEBI), the Serious Fraud Investigation Office (SFIO), and the Enforcement Directorate (ED) to thoroughly examine the allegations.

The bench questioned what was preventing authorities from filing a First Information Report (FIR) and probing the allegations. It emphasized the significant public interest at stake, stating that even if only a fraction of the allegations proved true, it would warrant the registration of an FIR and a proper investigation. The Court also noted that initiating an FIR would strengthen the ED's, SFIO's, and SEBI's ability to investigate the matter further.

Adding to the Court's concern was the Ministry of Corporate Affairs' (MCA) decision to close complaints of corporate governance irregularities against IHFL. The bench questioned the MCA's rationale, asking what interest the ministry had in closing the matter so readily. The court clarified that the closure of cases by the MCA should not impede the fresh examination of the allegations by the CBI, SEBI, SFIO, and ED. All allegations leveled by the NGO must be looked into.

The Supreme Court also addressed SEBI's "double standards" in handling similar cases, questioning the market regulator's inconsistent application of its jurisdiction to probe illegalities. Furthermore, the court directed the Delhi Commissioner of Police to produce original records of ED complaints that sought an investigation by the Economic Offences Wing (EOW) but were declined. A senior EOW officer has been directed to be physically present with all original records on the next date of hearing, which is scheduled for December 3, 2025.

During the hearing, Advocate Prashant Bhushan alleged that IHFL and its former promoters extended questionable loans to corporate entities, which then routed funds back to companies linked to promoter Sameer Gehlaut. He also claimed that Gehlaut had left the country and was now residing in London, acquiring luxury assets.