Supreme Court Orders CBI Probe into Alleged Financial Misconduct of Indiabulls Housing

The Supreme Court has directed the CBI to investigate financial irregularities involving Indiabulls Housing Finance, dismissing conclusions by Delhi Police's Economic Offences Wing. This comes following allegations of fraud, fund diversion, and stock manipulation. The CBI and other agencies are to conduct a thorough probe and report their findings.

The Supreme Court has intervened in the case of alleged financial misconduct involving Indiabulls Housing Finance Ltd, instructing the Central Bureau of Investigation (CBI) to independently scrutinize allegations previously reviewed by the Economic Offences Wing (EOW) of the Delhi Police. The directive explicitly instructs the CBI to disregard the EOW's findings in its investigation.

Chief Justice Surya Kant led the bench issuing the directive amid claims from the Citizens Whistleblower Forum, highlighting suspicious financial activities including loan discrepancies, fund diversion, and market manipulation linked to Indiabulls entities. Prominent lawyer Prashant Bhushan, representing the petitioners, insisted on an independent probe citing an RBI circular mandating CBI investigations into bank fraud over ₹50 crore.

The court's decision follows dissent from the EOW’s stance of not pursuing further probes into certain transactions. Despite some repayments, discrepancies remain unaddressed according to the petitioners, warranting further scrutiny. The action sets a timeline for various inquiries and involves coordinated efforts from the CBI and other regulatory bodies, aiming to resolve persistent questions on financial integrity.