Indiabulls ‘illegalities’: Supreme Court questions ‘friendly’ probe by agencies

New Delhi: The Supreme Court on Wednesday came down heavily on multiple investigative agencies for adopting a “friendly approach” in probing allegations of financial “illegalities” involving Indiabulls Housing Finance Limited (IHFL), now renamed as Sammaan Capital Ltd. 

A Bench of Justices Surya Kant and Joymalya Bagchi remarked it was “deeply concerned” with the slow and inconsistent pace of action by the Central Bureau of Investigation (CBI), the Ministry of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI), despite the gravity of accusations raised in the pending petition filed by Citizens Whistle Blower Forum (CWBF).

Observing that the Centre agencies did not seem eager to move forward, the Justice Kant-led Bench said that the apex court was concerned about the pace of the investigation. It added that SEBI, in particular, must avoid “double standards” and act decisively in cases involving suspected financial irregularities and possible harm to investors.

The Justice Kant-led Bench remarked that SEBI has full authority to probe the allegations and should act without hesitation. Pushing the CBI to move beyond preliminary investigation, the top court questioned the probe agency as to why no FIR had been registered so far. Filing an FIR would enable the Enforcement Directorate (ED) to effectively examine the money-laundering aspect of the matter, it remarked.

During the hearing, the ED assured the Supreme Court that it would convene a joint coordination meeting with the CBI, SEBI and the Serious Fraud Investigation Office (SFIO) within two weeks. The plea claimed that several companies, which received large loans from the firm, had small paid-up capital, overlapping directors, common office addresses and no real business activities.

The Supreme Court has now directed authorities, including CBI, ED, SEBI and SFIO, to submit reports by December 17, the next date of hearing.

Following the apex court’s sharp observations, Sammaan Capital’s stock closed at Rs 158.40 on Wednesday, down Rs 24.36 or 13.33 percent. In a press statement, senior advocate Mukul Rohatgi, the counsel for Sammaan Capital, said: “The present petition before the Supreme Court does not contain any allegation against Sammaan Capital. (IANS)

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