The Supreme Court on Friday said that it will not pass orders to arrest industrialist Anil Ambani in the case of bank fraud by Reliance Communications (RCOM) and its group entities.
A Bench of Chief Justice of India (CJI) Surya Kant and Justice Joymalya Bagchi said that the law laid down by the Supreme Court previously makes it clear that arrest can be ordered only if the investigating agency wants it and it cannot be done to sensationalise the matter.
"This court has ruled every now and then this court would be very shy to order arrest unless the investigating arm wants. Arrest cannot be ordered to sensationalise it," Justice Bagchi remarked.
"There are cases where custodial interrogation becomes needed. We have to leave it to the (investigating) agency," CJI Kant weighed in.
The Court was hearing a plea filed by former Secretary to the Government of India, EAS Sarma (petitioner), seeking a court-monitored probe into the allegations against Reliance and Ambani.
According to the
petition before the Court, RCOM and its subsidiaries - Reliance Infratel and Reliance Telecom - received loans amounting to ₹31,580 crore between 2013 and 2017 from a consortium of banks led by State Bank of India (SBI).
The plea claimed that a forensic audit commissioned by SBI revealed substantial diversion of funds, including thousands of crores used to repay unrelated loans, transfers to related parties, investments in mutual funds and fixed deposits that were immediately liquidated, and complex circular routing of money to disguise evergreening of loans.
The petitioner had earlier alleged that the investigating agencies were not investigating the roles of bank officials and regulators despite detailed forensic audits and independent reports pointing to widespread fraud.
When the matter was taken up for hearing today, the CBI and ED handed over their reports in sealed cover.
Advocate Prashant Bhushan, appearing for the petitioner, said that the agencies have chargesheeted Anil Ambani and his son Anmol Ambani and as per the chargesheet, it was found that money was siphoned out and a yacht has been bought.
He alleged that Anil Ambani is the kingpin behind the scam and yet, the CBI and ED are not willing to arrest him.
"In this ₹17000 crore scam, Anil Ambani is the kingpin but still neither CBI or ED is not willing to arrest him as if he is some holy cow. They are arresting (other) people, not him." Bhushan said.
"Investigation is ongoing. If this court thinks that we are not on correct track, then we can come to the right track," Solicitor General Tushar Mehta said.
"In light of the sealed cover report as of now we are willing to wait," the CJI said.
Justice Bagchi too agreed.
"See Satender Kumar Antil (judgment). If evidences or witnesses are not being tampered, then arrest need not be there. Cart need not be put before the horse. We create Antil and Pankaj Bansal judgments but then chase agencies like bloodhounds? It will run contrary to our judgments. Mr Bhushan you know it," he said.
"Chargesheet says all of this done at the instructions of kingpin and who is this kingpin? Anil Ambani!" Bhushan maintained.
"Why should we ex parte express opinion on merits of such arrests?" Justice Bagchi asked.
Senior Advocate Kapil Sibal, appearing for Ambani, asked how Bhushan managed to get a copy of the chargesheet. He alleged that the petitioner's sole agenda is to get Ambani arrested.
"Cognizance of chargesheet not taken. How does he have a copy ? His only agenda is arrest Anil Ambani. How does he have the chargesheet? There is more than what meets the eye. Why all this?" Sibal asked.
Senior Advocate Shyam Divan proceeded to highlight the consequences the Court's directions could have.
"All project revenues flow into lender-controlled bank and financial institution accounts, and no funds may be withdrawn or transferred without the prior written approval of lenders. The architecture of the cash flows itself is a complete answer to any allegation of diversion. There have been eight provisional attachment orders. As far as Reliance Infra is concerned, one of the provisional attachment orders dated January 28, 2026 concerns strategic regulated utility shareholding valued at approximately ₹1,575.39 crore. The shares attached include 53 crore equity shares of BSES Rajdhani, 28.36 crore equity shares of BSES Yamuna and 37.89 crore equity shares of Mumbai Metro. These are not ornamental holdings. BSES Rajdhani and BSES Yamuna together supply electricity to crores of consumers in the National Capital Territory of Delhi. The attachment and arrests have produced consequences that no economic remedy can later repair. The freezing of working capital headroom and the reputational impact are severe. As far as these listed companies are concerned, there is no specific allegation except with respect to one entity. These are companies with tens of thousands of shareholders. They are blemishless. Merely because they are part of the group, they are also being implicated," Divan said.
"We are only hearing you on the issue of jurisdiction. We cannot comment on these exercises," Justice Bagchi replied.
"I am not inviting the Court to do that. The purpose of putting this across is to indicate the consequences," Divan maintained.
"In monitored investigations, collateral damage can sometimes become very severe by the time the investigation culminates in a final report or acquittal. Look at the Jain Hawala monitored investigation. What collateral damage it caused. Vineet Narain judgment evolved the jurisprudence of continuing mandamus. It became a unique judicial tool, perhaps something the Indian judiciary can be proud of. But its consequences have also been devastating. We are fully conscious of that. That is why, to a certain extent, we did not listen to Mr Bhushan about the over-enthusiastic use of a tool which is ultimately a tool of last resort (arrest of Anil Ambani)," Justice Bagchi assured.
The Court eventually adjourned the case for July without passing any directions.
While some like Ashok Kumar Pal and Punit Garg were handed over on a platter to reduce the heat of the investigations. Closest confidant Amitabh Jhunjhunwala proved his loyalty by giving his own head when his master Anil was on verge of imminent arrest. All that’s left to be seen is if the second closest confidant Sateesh Seth is also sent to Tihar as CBI investigates the Reliance Telecom bank default case.
SIT has also been given time till July to continue the investigations so May will in likelihood be an easy month for Anil Ambani.
Like RADAG, which later got rechristened RAAGA; and after 2020 resurged under the RISEE organization tree will live another day, if Anil Ambani evades a well deserved arrest not once but multiple times in Multiple cases.
Every group company showing the same trend of amassing huge bank loans to layer default. Bank loans transferred the same day from recipient companies to a complex web of promoter linked companies; some making 3-4 fund trips in a matter of 24 hours. Each of these group companies had a different management; with only 3 men supervising remaining the common factor. Anil Ambani, Amitabh Jhubjhunwala and Sateesh Seth. Even an open and shut case, can require complex investigations.
Even if the RISEE structure crumbles under investigations, the global investments are enough for Anil Ambani’s family tree to live off for next 7 generations. What Anil Ambani jokingly used to call PATAAKAA Enterprises (Partnership of Anil Tina Anmol Anshul Krisha Amitabh and Abhinav). Operating globally as well having investments in India through multi layered FII routes and NBFCs. Some ultimately owning erstwhile Relinace Home Finance and commercial finance; others being fronted by top Market Guru.
When the LOCs against 26 people linked to Anil Ambani were issued in late July, Amitabh Jhunjhunwala was in India for a major project. A project that ended prematurely with resignation of the former Vice President of India. The coup which originated from West to topple the power in north, was scuttled by an ally of South before Anil could get East on board. And coincidentally Amitabh Jhunjhunwala (a global fund manager) was camping in India when Anil Ambani was gearing up light the PATAAKAA in Delhi.
If Anil Ambani goes Scot free, sooner or later there may be another industrialist and another Dhankar who may attempt a redo of what Anil Ambani started but had to leave it unfinished. And looking at the weakness of the one who was targeted to be replaced, the second coup may well see a result, Anil Ambani was aiming for in July of 2025.
All you know, it will be the badly beaten and bruised Anil Ambani who will do a repeat himself, as Tina prepares for a Maha Yagya starting June 3rd to give astrological medication to Anil as he turns 67 on June 4th; a yagya aimed to change his stars. Stars that can make Anil Ambani prosper once again, which is only possible with a change at the center of power.
Was PATTAAKAA only a joke between the Ambani and Jhunjhunwala family; or does it still have enough firepower to topple the center of power; only time will tell. Anil Ambani has shown that if a cat has nine lives; he has already lived 99 before he turns 67 in 21 days.