SC ‘extremely shy’ to order arrest in ADAG bank fraud case

The Supreme Court stated on Friday that it remains very reluctant to order arrests, even though petitioners asked why agencies have not detained alleged mastermind Anil Ambani in a financial fraud investigation.

The court noted that arrest should be considered only as a last resort, not as an initial step.

Representing Ambani, senior counsel Kapil Sibal remarked that he might have been deceived as well, while a CBI status report indicated that losses to public sector banks and the Life Insurance Corporation in seven probed cases amount to ₹27,337 crore.

Total 9 cases

Appearing before a bench led by Chief Justice of India Surya Kant, Solicitor General Tushar Mehta, representing the investigative agency, said nine regular cases had been filed against Reliance ADAG entities. Of these, seven are under investigation and charge sheets have been submitted in two. He added that additional charge sheets are expected later this year, starting in the next three weeks and extending through June, September, October, November, and December.

Mehta told the court that 31 look‑out notices had been issued and more than 224 witnesses, among them bank officials, had been examined. Searches were carried out at the premises of ADAG promoters and directors, yielding 3,960 documents. He noted that two arrests have already been made and that a few more arrests are anticipated in the coming days as further evidence emerges.

At this point, advocate Prashant Bhushan, representing petitioner EAS Sarma, asked why Ambani has not yet been arrested. Justice Bagchi responded that the decision to pursue custodial interrogation rests solely with the investigating agency.

‘Last resort’

Justice Bagchi remarked, “We are very hesitant to order arrests. Arrest should be a last resort. It is also a subjective judgment that must be made in light of sober legal principles. In this matter, our focus should be on gathering evidence and safeguarding, protecting, and producing witnesses, rather than sensationalizing the investigation.”

He emphasized that the decision on arrests should be entrusted to the discretion of the investigating agencies.

He further noted that although courts have issued rulings safeguarding the rights of the accused, they cannot permit enforcement agencies to pursue accused individuals indiscriminately.

The court, which is overseeing the investigation, also declined to entertain pleas from Ambani’s side. Chief Justice Kant said that, for now, the investigative agencies should be permitted to proceed without obstruction.

The case has been scheduled for a hearing in July.

Published on May 8, 2026