# EAS SARMA vs. UNION OF INDIA & ORS.

> SC judgment dated 2026-02-04. Citation: TCN-2026-SC-00080. A writ petition was filed concerning ongoing investigations by the Directorate of Enforcement (ED)…

- **Court:** SC
- **Order date:** 4 Feb 2026
- **Citation:** TCN-2026-SC-00080
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/eas-sarma-vs-union-of-india-ors-88pmk

## Summary

### Background

A writ petition was filed concerning ongoing investigations by the Directorate of Enforcement (ED) and the Central Bureau of Investigation (CBI) into alleged financial irregularities and defaults by various Reliance group companies, including Reliance Commercial Finance Ltd. (RCFL), Reliance Home Finance Ltd. (RHFL), Reliance Communications Ltd. (RCOM), and Reliance Power Ltd. (RPOWER). The investigations involve significant amounts of alleged proceeds of crime, forged bank guarantees, and defaults to numerous banks and financial institutions.

## Facts

Respondent Nos. 4 and 5 have entered appearance in deference to an order dated 23.01.2026.

Learned senior counsel for respondent Nos. 4 and 5 sought and was granted two weeks to file a counter affidavit.

The Directorate of Enforcement (ED) and the Central Bureau of Investigation (CBI) have entered appearance through Mr. Tushar Mehta, Solicitor General of India.

The ED has filed a counter affidavit stating that investigations under the PMLA Act and into the affairs of group companies are ongoing.

ECIR/STF/17/2025 has been registered in relation to Reliance Commercial Finance Ltd. (RCFL) and Reliance Home Finance Ltd. (RHFL).

Investments made by Yes Bank between 2017 and 2019 in non-convertible debentures and commercial papers of RCFL and RHFL are being examined.

…

## Issues and analysis

### Issue 1: Whether the Directorate of Enforcement (ED) should conduct a more comprehensive investigation into …

**Ratio:** The investigating agency (ED) is obligated to thoroughly examine every possible financial

…

**Reasoning:** The Court observed that the ED's counter affidavit, while detailing ongoing

…

**Interpretation:** The Court is emphasizing the necessity for a meticulous and exhaustive

…

**Application:** The ED is advised to constitute a Special Investigation Team (SIT) and take all

…

## Parties

- **Judges:** THE CHIEF J…; JOYMALYA…; +1 more
- **Appellants:** EAS S…
- **Respondents:** Reliance Commercia…; Reliance Home…; +3 more
- **Other parties:** one ex-Director…; Yes B…; +4 more
- **Advocates:** Prashant B…; Pranav Sa…; +39 more

## Timeline

- **2026-01-23 — Previous…**: Order issued in deference to which…
- **2026-02-04 — Hearing…**: The petition was called…

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/supreme-court-of-india/eas-sarma-vs-union-of-india-ors-88pmk