# In the matter of EAS Sarma vs. Union of India & Ors.

> SC judgment dated 2026-02-04. Citation: TCN-2026-SC-00009. A writ petition was filed before the Supreme Court of India regarding alleged financial…

- **Court:** SC
- **Order date:** 4 Feb 2026
- **Citation:** TCN-2026-SC-00009
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/supreme-court-of-india/eas-sarma-vs-union-of-india-ors-8e59f5ed

## Summary

### Background

A writ petition was filed before the Supreme Court of India regarding alleged financial irregularities and fraud involving Reliance Commercial Finance Ltd. (RCFL), Reliance Home Finance Ltd. (RHFL), Reliance Communications Ltd. (RCOM), and Reliance Power Ltd. (RPOWER).

## Facts

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

Yes Bank made investments between 2017 and 2019 in non-convertible debentures and commercial papers of both RCFL and RHFL.

RHFL allegedly borrowed public funds from 33 banks/financial institutions and committed a default of Rs. 7,523.46 crores.

33 lenders have been able to recover only Rs. 2,116.28 crores, with a net default of Rs. 5,407.18 crores.

RCFL has defaulted to the tune of Rs.6,280.57 crores.

ECIR/STF/26/2025 has been registered in relation to Reliance Communications Ltd. (RCOM), with a total outstanding amount of Rs.40,185.55 crores.

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## Issues and analysis

### Issue 1: Whether the ED's investigation into the alleged …

**Ratio:** The court expressed the need for a thorough investigation into every possible financial

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**Reasoning:** The court reviewed the counter affidavit of the ED and found it necessary to ensure that

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**Interpretation:** The court's interpretation emphasizes the importance of a comprehensive

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**Application:** The court directed the ED to constitute a Special Investigation Team (SIT) to

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## Parties

- **Judges:** JOYMALYA…; VIPUL M. PA…
- **Appellants:** EAS S…
- **Respondents:** Reliance Commercia…; Reliance Home…; +3 more
- **Advocates:** Prashant B…; Pranav Sa…; +37 more

## Timeline

- **2026-02-04 — Hearing…**: The petition was called…
- **2026-01-23 — Previous Ord…**: Reference to the order dated 23.01.2026, regarding the appearance of respondent Nos.4 and…

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