Supreme Court Directs CBI To Examine All ED Allegations Against Indiabulls Housing Finance

The Supreme Court today has directed Central Bureau of Investigation to examine all six allegations flagged by the Enforcement Directorate against Indiabulls Housing Finance and related entities, including five transactions earlier looked into by the Delhi Police's Economic Offences Wing.

A CJI Surya Kant led bench Special Judge, PMLA, Mumbai to decide within two weeks the CBI's plea for further investigation into the ₹1,574-crore transaction forming the sixth allegation. The bench has also directed CBI and EOW to file fresh status reports.

Recently court had questioned the Central Bureau of Investigation (CBI) and the Delhi Police's Economic Offences Wing (EOW) for failing to update the Court on the progress of investigations into allegations of financial irregularities involving Indiabulls Housing Finance Limited, now known as Sammaan Capital Ltd. Expressing dissatisfaction over the agencies' inaction the bench had asked, "What has CBI done from January to July? We don't want to hold investigation against innocent person. Let them have courage to say because money returned, no offence is made out."

Court had then called the conduct of the investigating agencies "highly questionable." The order noted, "Owing to the negligence of CBI and EOW Delhi in not even filing a status report and total failure to apprise this Court about steps taken for investigation, we would have summoned the heads of these agencies but for the persuasion of ASG Raju, who assures that needful will be done and status report filed within two weeks."

Last year too, Court had delivered sharp criticism against the Securities and Exchange Board of India (SEBI) and the Central Bureau of Investigation (CBI) for their reluctance to pursue investigations into allegations against Indiabulls Housing Finance Ltd. (now Sammaan Capital). The case, taken up on a plea by Citizens Whistle Blower Forum seeking a court-monitored SIT probe, concerns accusations of siphoning funds, round-tripping, large-scale corporate irregularities and violations of the Companies Act by Indiabulls, its promoters and related entities.

Justice Kant had remarked that when it came to possession and sale of attached properties, SEBI claimed exclusive jurisdiction, but hesitated when the issue was investigation. He noted that the regulator’s approach reflected “double standards”, further questioning why the agency’s officers were drawing salaries if they lacked authority to act. Justice Kant also referred to a previous instance in which SEBI sold property worth Rs 30 crore for only a few lakhs.

The Court said that when statutory powers exist, the regulator should exercise them rather than suggest an absence of jurisdiction. The Bench also criticised the CBI’s approach, noting an unusually “cool attitude” in handling the matter. Justice Kant observed that despite serious allegations involving public funds, the agency had neither registered a predicate FIR nor taken decisive steps to strengthen the broader investigation.

The Court was also concerned by the Ministry of Corporate Affairs having allegedly compounded around 100 violations within just two days, asking what “interest” prevented deeper scrutiny. Advocate Prashant Bhushan, appearing for the petitioner, had argued that the material on record justified a court-directed FIR and proposed an SIT consisting of officers from SEBI, CBI, ED and SFIO.

Additional Solicitor General SV Raju had then informed the Court that efforts had already been made before the magistrate and Economic Offences Wing in Delhi under Section 156(3) CrPC, but without concrete progress. He assured the bench that the CBI Director would convene a meeting with senior officers of all agencies concerned.

Case Title: Citizens Whistle Blower Forum v. Union of India

Hearing Date: August 18, 2026

Bench: CJI Surya Kant, Justice Bagchi and Justice Mohana