The Supreme Court has criticised the CBI’s “friendly” approach in the Indiabulls Probe, directing a joint review by CBI, ED, SFIO, and SEBI into allegations of multi-layered financial transactions, loan round-tripping, and governance violations involving the former Indiabulls Housing Finance Ltd.
Supreme Court Questions CBI’s “Cool and Friendly” Investigation
TheInterviewTimes.com | November 20, 2025: The Supreme Court on Wednesday raised sharp questions over the CBI’s “cool and friendly approach” in the ongoing Indiabulls Probe, which examines allegations of financial irregularities involving Indiabulls Housing Finance Ltd (IHFL), now known as Sammaan Capital Ltd.
A three-judge bench led by CJI-designate Surya Kant observed that such a soft investigative stance was unusual in cases involving possible misuse or siphoning of public funds. The court stressed that it had not commented on the merits of the allegations or on the current company, but insisted that the nature of the charges demanded a deeper investigation.
Court Emphasises FIR and Stronger Enforcement Action
The bench noted that the allegations — including multi-layered loan transactions and possible round-tripping — raised strong public interest concerns. According to the court, even if a fraction of the allegations appeared credible, it would justify immediate registration of an FIR. This, it said, would strengthen the legal standing of enforcement bodies such as the ED, SFIO and SEBI.
The Enforcement Directorate informed the court that a complaint it sent to the Delhi Police’s Economic Offences Wing was closed without adequate explanation. The apex court responded by instructing the Delhi Police Commissioner to appoint a senior EOW officer to present the complete investigation records and explain the rationale behind the closure.
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Indiabulls Probe: Ministry of Corporate Affairs Also Under Scrutiny
The Supreme Court also questioned the Ministry of Corporate Affairs for closing earlier complaints of corporate governance violations against IHFL, complaints initially flagged by the ED and SEBI. The bench asked pointedly about the ministry’s interest in shutting down these irregularity reports, especially when they dealt with complex financial structures and investor-linked risks.
These observations came after submissions made by advocate Prashant Bhushan, appearing for the Citizens Whistleblower Forum, who underlined that multiple red flags had been overlooked.
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Indiabulls Probe: Joint Review Ordered; SIT Possible
In a major step, the Supreme Court directed the CBI Director to convene a joint meeting within two weeks with senior officials from the ED, SFIO, and SEBI. This inter-agency consultation will evaluate the current status of the Indiabulls Probe and decide whether a Special Investigation Team (SIT) is necessary.
The allegations under review reportedly connect several corporate groups, including IHFL’s former promoters, entities linked to Reliance ADAG, the Chordia Group, and the Rana Kapoor family.
The matter has been scheduled for further hearing in three weeks.
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Company Responds, Distances Itself from Former Promoters
Senior advocate Mukul Rohatgi, representing Sammaan Capital, told the court that the petition does not contain any allegations against the company in its present form. He clarified that the concerns relate to past promoters, particularly Sameer Gehlaut, who no longer has any shareholding or involvement in the firm.
Indiabulls Probe: Key Takeaways
- Supreme Court criticised CBI’s “friendly” and “cool” approach in the Indiabulls Probe.
- Court sought a joint review by CBI, ED, SFIO and SEBI to determine future investigative steps.
- Delhi Police EOW asked to justify closure of earlier complaints.
- Ministry of Corporate Affairs questioned for shutting governance-related red flags.
- Sammaan Capital says allegations relate to past promoters, not the present company.