The Supreme Court on Friday declined to order the arrest of industrialist Anil Ambani in connection with the alleged bank fraud involving Reliance Communications (RCOM) and its group companies. The court underscored that the authority to arrest rests with investigating agencies and should not be exercised merely to create a sensation.

A bench comprising Chief Justice of India Surya Kant and Justice Joymalya Bagchi addressed a plea filed by former Union government secretary E A S Sarma, who sought a court-monitored probe into alleged financial irregularities linked to Reliance entities. The allegations revolve around loans totaling approximately ₹31,580 crore obtained by RCOM and its subsidiaries from a consortium led by the State Bank of India between 2013 and 2017.

During the hearing, Justice Bagchi noted that the court would be hesitant to order an arrest unless explicitly requested by the investigating authorities, emphasizing that arrest is considered a measure of last resort. Chief Justice Kant added that any requirement for custodial interrogation should be assessed and decided by the investigators rather than the court.

The petition referenced a forensic audit that purportedly revealed extensive fund diversion within Reliance entities. Allegations include the use of loan proceeds for repaying unrelated liabilities, transferring funds to related companies, investing borrowed funds in mutual funds and fixed deposits that were swiftly liquidated, and engaging in circular transactions allegedly intended to perpetuate or "evergreen" loans.

Sarma has previously criticized investigative agencies for not sufficiently probing the involvement of bank officials and regulators, despite evidence suggesting systemic fraud. The Supreme Court’s decision reflects a cautious stance, reaffirming procedural roles and leaving detailed investigative steps to the relevant authorities.