The Supreme Court criticised SEBI for “double standards” in its probe into Indiabulls, questioning inconsistencies in its regulatory actions.
The court also rebuked the CBI for a “cool attitude,” citing slow progress and lack of urgency in its investigation.
Both agencies were directed to present clearer timelines and demonstrate accountability to restore credibility in the probe.
The Supreme Court on Thursday sharply criticised the Securities and Exchange Board of India (SEBI) for what it called “double standards” in its handling of the Indiabulls investigation. The bench questioned why the market regulator appeared swift and stringent in some cases but slow and inconsistent in others, especially when large financial institutions were involved.
The court also pulled up the Central Bureau of Investigation (CBI), expressing concern over what it described as the agency’s “cool attitude” and lack of urgency. The bench noted that delays and gaps in the probe had raised serious questions about the credibility and effectiveness of the investigation.
Directing both agencies to provide clear timelines and transparent updates, the court warned that regulatory bodies “cannot afford selective enthusiasm” when dealing with allegations of financial irregularities.
A Bench of Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh sharply criticised Sebi, flagging what it saw as inconsistencies in the regulator’s conduct. “When the question of taking over properties and selling comes, then you say we are the only authority in the country with jurisdiction. But when the question of investigation comes? Because your officers have some vested interest,” Justice Kant asked.
“(What is the problem) when we are conferring you jurisdiction. When we want to give you some authority, why are you reluctant? Every day we see double standards of Sebi," Justice Kant said.
Referring to a past instance where the apex court constituted a high-powered committee, Justice Kant said Sebi’s stand was that it was the only agency that had the right to auction properties.
