Apex court pulls up govt over Indiabulls probe, seeks action

The Supreme Court (SC) on Wednesday criticised the Union government for not investigating alleged irregularities in financial transactions by non-banking financial company Indiabulls Housing Finance Ltd (now Sammaan Capital) and directed multiple investigating agencies, including the Central Bureau of Investigation and the Enforcement Directorate (ED) to hold a meeting within two weeks and examine if sufficient material exists to lodge a first information report (FIR) in the matter.

- Abraham Thomas

“We are sorry to say, we have not seen such a friendly approach as we have seen in this case...why did the ministry of corporate affairs (MCA) close the matter like this. What is their interest? ” asked a bench headed by justice Surya Kant, while examining a petition seeking an independent probe against the former promoters of Indiabulls Housing Finance Ltd (THFL).

Additional solicitor general (ASG) SV Raju appearing for ED and Serious Fraud Investigation Office (SFIO) said, “ED has material and we even wrote to the Commissioner of Police, Maharashtra and the Economic Offences Wing of Delhi police to take action on this material.” He said a magistrate’s court did not allow it to file a FIR. ED said in an affidavit filed in SC that unless there is a predicate offence, it cannot probe the matter.