Supreme Court Highlights Discrepancy in ADAG Debt Settlements Amid Loan Fraud Probe The Supreme Court on Monday highlighted concerns over the settlement of Rs 2983 crores in debts against Anil Dhirubhai Ambani Group (ADAG) companies through insolvency proceedings, which were resolved for a mere Rs 26 crores. The court referenced a report from the Enforcement Directorate (ED) indicating that these settlements were facilitated by eight Non-Banking Finance Companies (NBFCs) through a scheme known as "Project Help." The court emphasized the need for thorough investigations into alleged financial misconduct linked to the ADAG, which faces a plea alleging a loan fraud involving over Rs 40,000 crores. A bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice Vipul Pancholi was addressing the case, which seeks to probe the alleged fraud. The court had earlier criticized the "unexplained delay" in investigations by agencies and directed the ED and Central Bureau of Investigation (CBI) to expedite their probe. Solicitor General Tushar Mehta informed the court that a Special Investigation Team (SIT) has been formed, comprising ED officers, forensic analysts, and Bank of Baroda staff, with investigations into eight cases already underway. The court noted that claims totaling Rs 2983 crores were extinguished for a total settlement of Rs 26 crores, raising questions about the validity of the settlements. The ED report highlighted that all funding for insolvency petitions was arranged through the eight NBFCs under Project Help, suggesting potential manipulation of the Insolvency and Bankruptcy Code (IBC) to undervalue assets.#supreme_court #central_bureau_of_investigation #enforcement_directorate #anil_dhirubhai_ambani_group #project_help
