EAS Sarma Vs Union of India & Ors. (Supreme Court of India)
Summary: The Supreme Court, in EAS Sarma Vs Union of India & Ors., examined the progress of investigations by the Directorate of Enforcement (ED) and the Central Bureau of Investigation (CBI) into alleged financial irregularities involving several Reliance group companies. The proceedings concerned investigations relating to Reliance Commercial Finance Ltd. (RCFL), Reliance Home Finance Ltd. (RHFL), Reliance Communications Ltd. (RCOM) and Reliance Power Ltd. (RPOWER). The Court considered the ED’s counter affidavit and a sealed-cover report submitted by the CBI. It emphasised the need for comprehensive, independent and timely investigations into the alleged diversion of public funds and related financial transactions.
The ED informed the Court that ECIR/STF/17/2025 concerned RCFL and RHFL, including investments made by Yes Bank between 2017 and 2019 in non-convertible debentures and commercial papers. According to the ED, RHFL had borrowed funds from 33 banks and financial institutions and defaulted on ₹7,523.46 crore. Recoveries amounted to ₹2,116.28 crore, leaving an alleged net default of ₹5,407.18 crore. In relation to RCFL, the ED reported a default of ₹6,280.57 crore involving 21 banks and financial institutions. Another investigation, ECIR/STF/26/2025, concerned RCOM, with an alleged outstanding amount of ₹40,185.55 crore. A third investigation, ECIR/STF/14/2025, related to allegations of forged bank guarantees involving RPOWER and an alleged loss of ₹105.98 crore to the public exchequer. The ED further stated that it had searched 46 premises, issued 13 provisional attachment orders and attached 204 properties valued at ₹12,012.45 crore. These figures represented the investigative agency’s claims recorded in the proceedings.
