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The Supreme Court has directed the Central Bureau of Investigation (CBI) to examine all six allegations of alleged dubious transactions involving Indiabulls Housing Finance Ltd (IHFL), now known as Sammaan Capital Ltd, and related entities. The court said the CBI must independently examine five allegations already looked into by the Delhi Police Economic Offences Wing (EOW), while a Mumbai special court will consider the agency’s request to investigate the sixth allegation involving the alleged routing of INR 1,575 crore. The case relates to allegations including suspicious loans, fund diversion, share-price manipulation and loan evergreening.
The Supreme Court has directed the Central Bureau of Investigation (CBI) to examine all six allegations of alleged dubious transactions involving Indiabulls Housing Finance Ltd (IHFL), now known as Sammaan Capital Ltd, and related entities. The directions were issued by a bench comprising Chief Justice Surya Kant and Justices Joymalya Bagchi and V Mohana.
The court was informed that the Enforcement Directorate (ED) had flagged six allegations. Five of these had already been examined by the Delhi Police Economic Offences Wing (EOW), while the sixth concerns the alleged routing of INR 1,575 crore. The CBI has approached a special Prevention of Money Laundering Act (PMLA) court in Mumbai seeking permission to investigate this sixth issue.
The Supreme Court directed the CBI to independently examine the five allegations investigated by the EOW, irrespective of the conclusions reached by the Delhi Police agency. The EOW had concluded that further investigation into those allegations was not required. The CBI has been asked to submit a comprehensive report to the Supreme Court.
The Mumbai special court has been directed to decide the CBI's application for further investigation within two weeks after taking up the matter on August 24. The Supreme Court has also directed the CBI to submit a progress or status report after the special court's decision.
The allegations form part of a petition filed by the Citizen Whistle Blower Forum, which relied on findings and concerns raised by the ED. The allegations include suspicious loan transactions, diversion of funds, alleged manipulation of share prices and evergreening of loans involving entities linked to Indiabulls.
One allegation concerns loans of nearly INR 1,693 crore extended to entities belonging to the Americorp Group. It has been alleged that the loan funds were subsequently routed back into shares of Indiabulls-linked entities, with the transactions allegedly generating profits through manipulation of share prices. Another allegation relates to alleged diversion of funds and suspicious transactions connected with the Palais Royale project.
The Supreme Court had previously questioned the progress of the investigation after the CBI and Delhi Police EOW remained silent on the allegations. The court had earlier directed the CBI to take a decision on registration of regular cases based on the ED's complaint and had sought status reports from the agencies.
The matter has been before the Supreme Court since 2025. The court had earlier asked the CBI director to take a final decision on registration of regular cases and had directed coordination between the CBI, ED, Securities and Exchange Board of India (SEBI) and Serious Fraud Investigation Office (SFIO). It had also questioned the handling of the allegations by various agencies.
The allegations are against IHFL and its erstwhile promoters and related entities. The petitioner has alleged that loans were advanced to entities associated with large corporate groups and that funds were subsequently routed back to companies linked to the promoters. These remain allegations under investigation, and the Supreme Court has not ruled on their merits.
Source PTI
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