New Delhi: A Public Interest Litigation filed in the Supreme Court has sought a court-monitored investigation into an alleged ₹1,500 crore banking fraud involving Asset Reconstruction Companies, public sector banks and a Noida-based infrastructure firm. The petition has urged the Centre to constitute a judicial commission or expert panel to examine the alleged financial irregularities and the wider network of transactions.
Petition Flags Role Of ARCs And Banks
According to the petitioners, the matter involves a complex financial structure allegedly used to facilitate diversion and misuse of funds. The plea has sought the formation of either a judicial commission or an expert committee comprising officials from the RBI, SEBI, SFIO, Enforcement Directorate and Central Bureau of Investigation.
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The petitioners have argued that the case requires a comprehensive probe because it allegedly involves multiple institutions, banking transactions, restructuring mechanisms and financial entities. They have claimed that the matter goes beyond a routine loan default or recovery dispute.
Forensic Audit Cited In Plea
The PIL claims that a forensic audit report flagged suspicious transactions and financial discrepancies linked to the Noida-based infrastructure firm. According to the petition, the company had availed loans worth approximately ₹912 crore between 2012 and 2015 from a consortium led by the State Bank of India and involving seven public sector banks.
The petition further alleges that a 2018 forensic audit indicated diversion of more than ₹902 crore through shell companies, fictitious vendors, unverified bank accounts and suspicious transactions. It also claims that the Asset Reconstruction Company framework may have been misused, adding complexity to the financial restructuring process and making the money trail harder to trace.
Court Oversight Sought For Probe
The plea has requested directions to agencies including the ED, SFIO and CBI to examine all transactions flagged in the forensic audit report. It has also sought an independent review of the role of ARCs and the restructuring mechanisms used within the banking system.
The petitioners have argued that judicial oversight is necessary to ensure transparency and accountability in the investigation. They have also called for a detailed examination of whether the alleged financial structure points to broader manipulation involving multiple entities.
The matter has brought renewed attention to concerns over large corporate loans, asset reconstruction processes and transparency in loan recovery mechanisms. The Supreme Court is expected to consider the petition and any possible directions in the case.
