SC expands CBI probe into Indiabulls case
The Supreme Court on Tuesday asked the CBI to examine all six allegations flagged by the Enforcement Directorate (ED) related to alleged dubious transactions involving Indiabulls Housing Finance Limited (IHFL) and related entities. The controversial real estate and financing firm Indiabulls has changed its name to Sammaan Capital and claimed a change in shareholding pattern.
On July 28, the top court pulled up the CBI and the Delhi Police’s Economic Offence Wing (EoW) for remaining silent on allegations of dubious transactions involving IHFL, calling their conduct “shocking” and saying it appeared to be a “case of quid pro quo“. On Tuesday, a bench comprising Chief Justice Surya Kant and justices Joymalya Bagchi and V Mohana took note of the submissions of Additional Solicitor General S V Raju, appearing for the probe agencies, that the ED referred to six allegations, and five aspects are being probed by the EoW.
The law officer said that, so far as the sixth issue, pertaining to alleged routing of Rs.1,575 crore, is concerned, the CBI has filed an application before a special PMLA (Prevention of Money Laundering Act) court in Mumbai seeking nod to probe. The bench directed the special judge in Mumbai to decide the CBI’s application for further investigation within two weeks after it takes up the plea on August 24.
“The CBI shall thereafter submit a progress/ status report to the Supreme Court,” the bench directed. The court also noted that so far as the EoW probe was concerned, it has given a clean chit in all five allegations probed by the Delhi Police agency.
The EoW was of the opinion that further investigation was not advisable.
Favouring a holistic view of the probes conducted so far by the EoW, the bench directed the CBI to independently inquire into the five allegations already looked into by the EoW, irrespective of the conclusions.
“The CBI is directed to inquire into the five other allegations contained in the ED complaint irrespective of the opinion or report of the Delhi Police EOW and submit a comprehensive report to the court,” it said.
The directions came in a petition filed by ‘Citizen Whistle Blower Forum‘ which relied on the ED’s findings alleging suspicious loan transactions, diversion of funds, share-price manipulation and evergreening of loans involving Indiabulls-linked entities.
Advocate Prashant Bhushan, appearing for the petitioner, submitted that a Reserve Bank of India (RBI) circular mandated that bank frauds involving more than Rs.50 crore have to be investigated by the CBI.
He said that the six allegations in the ED complaint prima facie disclosed fraud, criminal conspiracy, diversion of funds and evergreening of loans funded through public money. One of the allegations concerned loans of nearly Rs.1,693 crore advanced to entities of the Americorp Group.
Prashant Bhushan said that the loan funds were allegedly routed back into shares of Indiabulls entities, generating profits through manipulated share-price movements. He also referred to the ED’s findings concerning alleged diversion of funds and suspicious transactions relating to the Palais Royale project. On December 17 last year, the top court directed the CBI director to take a final call within a week on the registration of regular cases and file a fresh compliance affidavit on the date fixed.
Earlier, on November 19, 2025, the court had questioned the “reluctance” of the CBI and SEBI to probe the allegations of “dubious transactions” against IHFL. It ordered the agency director to hold a meeting with SEBI, the SFIO and the ED to look into the matter. It had also pulled up the Ministry of Corporate Affairs for the compounding of multiple offences committed by IHFL, and came down heavily on SEBI over the “double standards” adopted by the market regulator in different cases over its jurisdiction to probe into illegalities.
The petitioner NGO has alleged large-scale irregularities in the affairs of IHFL, claiming that the company and its erstwhile promoters advanced dubious loans to entities owned by large corporate groups, which then allegedly routed the funds back into the accounts of companies owned by the promoters to increase their personal wealth. The NGO has challenged the February 2, 2024, order of the high court refusing to order an investigation into the matter.
During the ED probe, Indiabulls promoter Sameer Gehlaut has left the country for Europe. Gehlaut belongs to a politically connected family from Haryana and has links with many political leaders. After 2022, the cases against Indiabulls were slowed down due to their political clout.
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