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SC orders CBI to probe all six Indiabulls allegations
The Supreme Court on Tuesday directed the Central Bureau of Investigation (CBI) to independently examine all six allegations flagged by the Enforcement Directorate (ED) in the Indiabulls Housing Finance Limited (IHFL) case. A bench of Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana ordered the CBI to probe five claims already investigated by the Delhi Police's Economic Offences Wing (EoW), which had found no grounds for further action. The court said the CBI must not be influenced by the EoW findings. The sixth allegation concerns the alleged routing of Rs 1,575 crore, National Herald India reports.
The court was hearing a petition by the Citizen Whistle Blower Forum, represented by advocate Prashant Bhushan. He argued that an RBI circular required a CBI investigation into bank fraud exceeding Rs 50 crore. The allegations include suspicious lending, fund diversion, share-price manipulation, and loan evergreening involving entities linked to Indiabulls, the report states. One allegation relates to loans of about Rs 1,693 crore to the Americorp Group, which Bhushan said was later used to manipulate share prices of Indiabulls-linked firms. The court had earlier in July criticised the agencies' response as 'shocking' and hinted at a possible 'quid pro quo'.
The CBI has approached a special court under the Prevention of Money Laundering Act (PMLA) in Mumbai for permission to probe the Rs 1,575 crore routing allegation. The Supreme Court directed the special judge to decide the application within two weeks of taking it up on 24 August. The CBI must then file a progress report before the top court.
Indian Opinion Analysis
The Supreme Court has ordered the Central Bureau of Investigation (CBI) to independently probe all six allegations in the Indiabulls Housing Finance case, including a fresh investigation into five matters already closed by the Delhi Police's Economic Offences Wing (EoW). The court's directive came on a petition by the Citizen Whistle Blower Forum, represented by advocate Prashant Bhushan, who argued that the RBI mandates a CBI probe into bank fraud over Rs 50 crore. The bench noted that the EoW report should not influence the CBI's inquiry. The sixth allegation involves the alleged routing of Rs 1,575 crore, for which the CBI has sought permission from a special PMLA court in Mumbai. The top court has given the special judge two weeks from 24 August to decide on that application. The case highlights the court's growing scrutiny of how agencies handle corporate fraud complaints.
Coverage: 2 sources, 1 government-critical, 1 neutral
Sources (2): timesofindia.indiatimes.com (neutral report), nationalheraldindia.com (government critical)
This story was synthesised by AI from the 2 sources linked above. Methodology and corrections.
Updated: this story now draws on 2 sources.
