NEW DELHI – The Supreme Court sharply criticised the Central Bureau of Investigation (CBI) for failing to appear in court during a hearing on alleged financial irregularities at Indiabulls Housing Finance Limited (now Sammaan Capital Ltd.). The top bench questioned the agency’s authority to ignore the court’s summons and demanded that senior officials explain their absence.
Court Demands Accountability from Probe Agency
A bench comprising Justices Surya Kant and Joymalya Bagchi expressed incredulity at the CBI’s decision to skip the hearing. “Why has CBI not appeared before us despite issuing a notice to it? How can the CBI say we will not appear before us? Does the CBI have the guts to not appear before us?” the bench demanded. The court summoned senior CBI officials to appear in person and respond.
The petition, filed by advocate and whistle‑blower Prashant Bhushan for the Citizens Whistle Blower Forum, accuses Indiabulls Housing Finance of issuing dubious loans worth thousands of crores to shell companies; the funds allegedly circled back to enrich promoters as unsecured payouts. While the Enforcement Directorate (ED) and SEBI are investigating, neither has triggered a formal complaint or taken direct action, Bhushan told the court.
Probes Lay Bare Financial Circuitry
The ED confirmed in its affidavit that suspicious transactions were discovered, including funds potentially moved abroad, while SEBI admitted reviewing the matter and forwarding it to competent authorities. Bhushan emphasised that banks, not individual investors, were the cheated parties.
Additional Solicitor General S.V. Raju, representing the ED, suggested the CBI needed state consent before acting—an explanation the court found unacceptable. “The CBI can very well register a case based on the judicial record. The central (probe) agencies should have come out with a report, if anything wrong has been done. Why wait for the FIR or complaint?” the bench asserted.
The court has scheduled the next hearing for July 30, warning that “no one should be above the law” and insisting the CBI attend with senior officers prepared to answer inquiries.