Supreme Court Mandates SIT Probe Into ADAG Bank Fraud as ED Re-summons Tina Ambani

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The Enforcement Directorate (ED) is intensifying its investigation into the Anil Dhirubhai Ambani Group (ADAG), which is linked with an alleged Rs. 40,000 crore banking fraud. It has formed a Special Investigation Team (SIT) to probe the fraud.

This move follows a Supreme Court directive aimed at unraveling a complex web of money laundering and fund diversion. Tina Ambani, wife of the Reliance Group chairman, recently skipped an ED summons, prompting the agency to prepare fresh orders for her deposition.

Unmasking the Billion-Dollar Money Trail

The creation of the SIT is a major step in a long-running case. The Supreme Court expressed ‘serious concern’ about the slow pace of the investigation. Forensic audits showed financial problems that date back to 2020.

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The probe basically focuses on claims that money from public banks was moved through fake companies. This money was allegedly used to hide bad loans. Reportedly, the Enforcement Directorate (ED) has already seized assets worth about Rs. 12,000 crore, including the family home in Pali Hill and the Reliance Centre in New Delhi.

According to a report by The Daily Pioneer, the Supreme Court has directed the CBI to specifically examine the "nexus and collusion with bank officials" to determine if loans were released despite clear financial red flags. This means the investigators are looking for corruption inside the banks. The agency is now tracking money trails both in India and in other countries. This shows they are determined to find where the ‘proceeds of crime’ ended up.

What Happens to the Rs. 1.78 Lakh Crore in Outstanding Dues?

The SIT is focused on crimes, but a big question remains. What will happen to the Rs. 1.78 lakh crore total outstanding debt owed by ADAG? So far, bankruptcy cases have recovered only Rs. 15,000 crore. This leaves a huge gap that affects Indian taxpayers and banks.

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Apart from this, the Supreme Court pointed out a worrying trend. They noticed that companies linked to the family often buy back assets for very low prices during auctions.

"The IBC platform is being misused like anything. You get the company and assets undervalued," noted the Bench led by CJI Surya Kant, as reported by The Hindu.

This situation suggests the investigation will look closely at the bankruptcy process itself. The SIT and CBI might challenge previous sales of assets, putting other major business deals under intense scrutiny. The goal is to make sure public money is not lost through unfair auctions.

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