Supreme Court Orders CBI Probe into Indiabulls Financial Allegations

The Supreme Court has directed the Central Bureau of Investigation (CBI) to investigate all six allegations of financial irregularities against Indiabulls Housing Finance, now known as Sammaan Capital, and its associated entities. This directive follows the court’s repeated criticism of investigating agencies for their lack of progress in the ongoing case.

• Six allegations of financial irregularities are under investigation.
• One specific allegation involves a transaction of approximately Rs 1,574 crore.
• International Holding Company PJSC (IHC) invested $1 billion as Sammaan Capital’s new promoter.

A Bench led by Chief Justice of India Surya Kant has instructed both the CBI and the Delhi Police’s Economic Offences Wing (EOW) to submit fresh status reports on their respective investigations. Five of these six allegations had previously been under examination by the EOW.

CBI’s Mandate and Judicial Oversight

The sixth allegation specifically concerns a transaction valued at approximately Rs 1,574 crore. For this particular matter, the CBI has formally sought permission from the Special Court under the Prevention of Money Laundering Act (PMLA) in Mumbai to conduct a further probe.

• The CBI requested permission from the Special Court under PMLA.
• The Supreme Court mandated the Special Judge to decide on this application.
• The Special Judge must issue a decision within two weeks.

Allegations and Corporate Rebranding

This case originated from a petition filed by the Citizens Whistle Blower Forum, which called for a court-monitored Special Investigation Team (SIT) probe. The allegations include the diversion and round-tripping of funds, various corporate irregularities, and violations of company law involving Indiabulls, its promoters, and associated entities.

Sammaan Capital has clarified its position, stating that the allegations are specifically against its ex-promoter, Sameer Gehlaut. The company maintains that it should be considered a victim in this matter, not an accused party.

Furthermore, Sammaan Capital highlighted that International Holding Company PJSC (IHC) is now its new promoter, having invested $1 billion. The Supreme Court has acknowledged and established a clear distinction between Sammaan Capital and Mr. Gehlaut.

The Special Judge in Mumbai now holds the immediate decision on the CBI’s application, with a strict two-week deadline set by the Supreme Court.