SC questions "friendly" investigations, SEBI’s "double standards" in IHFL case

The Supreme Court on Wednesday (Nov 19) questioned the "friendly approach" adopted by the CBI and the Ministry of Corporate Affairs (MCA) in probing allegations against Indiabulls Housing Finance Ltd (IHFL).

A Bench of the top court said it was particularly concerned about SEBI’s reluctance to investigate the matter, calling it "double standards". The court noted that it was now "giving SEBI the jurisdiction to probe" if the regulator believed it did not already possess the mandate to do so.

Pressing for concrete action, the Bench nudged the CBI to register an FIR, observing that doing so would “strengthen the ED’s hand” in pursuing the case. The court directed the CBI to file a detailed response clarifying its position on the allegations and the investigative steps it intends to take.

The Enforcement Directorate (ED) told the court that it would convene a joint meeting with officers from the CBI, SEBI and the Serious Fraud Investigation Office (SFIO) within two weeks to streamline coordination. The agency also flagged that it had previously filed complaints with the Economic Offences Wings of the Delhi and Mumbai Police, but no cognisance was taken.

The Supreme Court will next hear the matter on December 17.

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