Now Reading: Karnataka HC quashes ED case against Sammaan Capital
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Karnataka HC quashes ED case against Sammaan Capital
The Karnataka High Court on Thursday quashed the money laundering case filed by the Enforcement Directorate against non-banking finance company Sammaan Capital, formerly Indiabulls Housing Finance. Justice M Nagaprasanna ruled that without…
The Karnataka High Court on Thursday quashed the money laundering case filed by the Enforcement Directorate against non-banking finance company Sammaan Capital, formerly Indiabulls Housing Finance. Justice M Nagaprasanna ruled that without the predicate offences standing against the NBFC, the ED had no basis to proceed under the Prevention of Money Laundering Act.
Separately, the Supreme Court has directed the CBI to investigate allegations of an Rs 8,000 crore loan diversion involving Sammaan Capital's erstwhile promoter Sameer Gehlaut and five corporate groups. The case stems from a 2019 PIL filed by the Citizens Whistle Blower Forum. Sammaan Capital says it is a victim, not an accused, and that investigating agencies have found no wrongdoing by the company. The Economic Offences Wing of the Delhi Police has stated that Sammaan Capital recovered all money lent to the five groups.
The CBI is also investigating transactions involving Gehlaut and former Yes Bank promoter Rana Kapoor. The matter before the special CBI court in Mumbai is scheduled for 24 August. Sammaan Capital operates under a new promoter after Gehlaut divested his stake in late 2023, and Abu Dhabi-based International Holding Company infused capital in March 2026.
Indian Opinion Analysis
The coverage splits sharply. Barandbench reports the Karnataka High Court quashing the ED case as a clean legal win for Sammaan Capital, focusing on the procedural basis for the quashing. Livemint, by contrast, leads with the Supreme Court ordering a CBI probe into the Rs 8,000 crore loan diversion allegations, and includes the stock price drop and the company's defensive statement that it is a victim. Livemint's framing emphasises the ongoing criminal investigation and the link to Gehlaut and Yes Bank, while Barandbench's article is narrower and more favourable to the company. A careful reader should note that the two developments are legally distinct: the high court quashing does not affect the Supreme Court-ordered CBI probe into the former promoter's conduct. Watch the CBI court hearing on 24 August for the next concrete step.
Coverage: 2 sources, 2 neutral
Sources (2): barandbench.com (neutral report), livemint.com (neutral report)
This story was synthesised by AI from the 2 sources linked above.
Updated: this story now draws on 2 sources.
