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Supreme Court Orders Independent CBI Probe into Indiabulls
19 Aug
Summary
- CBI will independently examine Indiabulls' financial irregularities.
- Supreme Court directs CBI to ignore prior EOW findings.
- Allegations include loan diversion, share manipulation, and fund evergreening.
The Supreme Court has mandated the CBI to conduct an independent examination of financial irregularities alleged against Indiabulls Housing Finance Ltd and its associated entities. This directive, issued on Tuesday, August 18, 2026, specifically instructs the CBI to disregard prior conclusions made by the Delhi Police Economic Offences Wing (EOW) regarding these allegations.
The Public Interest Litigation (PIL) filed by Citizens Whistleblower Forum highlighted concerns about suspicious loan transactions, fund diversion, share price manipulation, and the practice of loan evergreening. The court's decision to order a fresh probe came after the petitioner questioned the EOW's decision not to pursue certain transactions.
Arguments presented by the petitioner's counsel suggested that bank frauds exceeding ₹50 crore necessitate a CBI investigation, as per RBI guidelines. Allegations include the routing of nearly ₹1,693 crore in loans to Americorp Group entities, allegedly back into Indiabulls-linked shares for price manipulation, and diversion of funds related to the Palais Royale project.
Respondents disputed the allegations, stating loans were repaid and no bank reported defaults. However, the court pressed on the issue of evergreening, referencing an ED affidavit. The CBI noted it had filed a chargesheet for one transaction of approximately ₹1,574 crore and sought permission for further investigation.
The Supreme Court directed the Special Judge, PMLA, Mumbai, to decide the CBI's application concerning the ₹1,574-crore transaction by August 24, 2026. Subsequently, the CBI is to submit a progress report. For other allegations, the CBI must conduct an independent inquiry and submit a comprehensive report.
The EOW was also directed to complete its pending investigation into the ₹1,574-crore transaction and file a status report. This directive follows a 2025 order where the Supreme Court had previously asked senior officers from CBI, ED, SFIO, and SEBI to jointly investigate allegations concerning five borrower groups.
