Supreme Court Rebukes Registry, Orders Inquiry Over Lapse in ₹37,000 Crore Fraud Case

May 4, 2026 : In a sharp internal reprimand, the Supreme Court of India criticized its own Registry for what it described as “nasty” conduct, with officials acting as if they were a “super Chief Justice of India.”

A bench led by Chief Justice Surya Kant and Justice Joymalya Bagchi made these remarks while hearing a bail plea filed by Ayushi Mittal alias Ayushi Agarwal, accused in an alleged investment fraud exceeding ₹37,000 crore.

The bench questioned how Registry officials interpreted its March 23 order as not requiring notice to the Directorate of Enforcement (ED) and other respondents. Expressing strong displeasure, the Court directed the Registrar Judicial to conduct a fact-finding inquiry into the lapse.

In its latest order, the bench clarified that notice must be served to the ED and observed that the earlier order clearly intended to implead the agency. The Court had, on March 23, allowed an oral request by counsel for the Rajasthan government to include the ED as a party, primarily to verify whether all movable and immovable assets linked to the petitioner and her extended family had been properly attached.

The case involves allegations that Mittal, her husband, and their company orchestrated a large-scale investment fraud. While the defence claims that a significant portion of investor funds has been returned, several hundred crores remain in bank accounts frozen by the ED.

The Court reiterated that it will not examine the bail plea on merits until a comprehensive disclosure of assets is submitted. It has directed the petitioner’s legal team to file a detailed affidavit listing properties and assets of the petitioner, her family members, and associated company officials, including directors and key staff.

The matter is expected to be listed again later in May, after the Registry inquiry report is submitted. (PTI)