REGULATORY · INDIA
Supreme Court Orders Joint CBI-ED Probe
Change
The Supreme Court directed the CBI and Enforcement Directorate to conduct a joint investigation into alleged loan fraud involving ADAG companies.
Why it matters
The Supreme Court ordered the CBI and ED to join investigations into alleged loan fraud linked to ADAG companies. The Enforcement Directorate reported that Rs 2,983 crore of debts were settled for Rs 26 crore through eight NBFCs under 'Project Help'. The ED has constituted a Special Investigation Team of ED officers, and the probe is ongoing. The court instructed the agencies to unearth alleged illegalities tied to those insolvency settlements.
Implications
- · Raises settlement exposure tied to the liability finding
Who is affected
- · Creditors
- · Banks
- · Compliance teams
Source
Topics
Law & Public Safety Court Rulings Regulatory Actions Compliance