Supreme Court Calls for CBI Probe into SREI Group's Alleged Fraud

The Supreme Court has demanded the CBI's response on a plea urging an investigation into alleged financial fraud by the Kolkata-based SREI Group. The plea highlights significant financial irregularities, including fund round-tripping and public money siphoning, demanding scrutiny from CBI and ED as the case involves thousands of crores.

The Supreme Court, on Wednesday, sought the Central Bureau of Investigation's (CBI) stance on a petition demanding an investigation into the alleged financial misconduct by the Kolkata-based SREI Group. Chief Justice Sanjiv Khanna and Justice Sanjay Kumar reviewed submissions by advocate Prashant Bhushan, representing petitioner Bhupendra Nath, urging a comprehensive probe by the CBI and the Enforcement Directorate (ED) into the purported financial irregularities by the group.

The petitioner contends that the SREI Group, currently managed by the National Asset Reconstruction Company Limited following the Reserve Bank of India's (RBI) intervention in 2021 due to governance and repayment issues, faces accusations of fund round-tripping and misappropriating public funds borrowed from various banks. The plea contests the Allahabad High Court's decision from March 2024, which upheld the closure of the investigation by the economic offences wing, Varanasi.

Additional Solicitor General S V Raju, representing the ED, stated he would also speak for the CBI, indicating the agency's responsibility to decide the next legal steps. The case alleges involvement of thousands of crores and breaches the RBI's guideline to refer cases of over Rs 500 crore frauds to the CBI, pointing to negligence by investigating agencies.

(With inputs from agencies.)