NEW DELHI — The Delhi High Court has held that an entity called upon to furnish documents in an ongoing Serious Fraud Investigation Office (SFIO) probe has no legal right to demand Ministry of Corporate Affairs (MCA) authorization orders or underlying investigative material at a preliminary stage.
Dismissing a writ petition filed by Mandke Foundation—a Section 8 non-profit entity running Mumbai’s Kokilaben Dhirubhai Ambani Hospital, where Tina Ambani serves as a director—a Single Bench of Justice Swarana Kanta Sharma ruled that disclosing confidential orders during an active probe could severely prejudice investigations.
Background of the Case
The SFIO initiated a statutory investigation under Section 212 of the Companies Act, 2013, into the financial affairs of Anil Ambani-promoted group entities, including Reliance Home Finance Limited (RHFL) and Reliance Communications Limited (RCom), following directions issued by the MCA in late 2025.
In April 2026, the SFIO issued a notice under Section 217 of the Act to Mandke Foundation. The investigative agency stated that an analysis of financial statements indicated direct or indirect financial transactions between the foundation and the Reliance entities under investigation. The SFIO directed the foundation to produce financial statements and bank records spanning from FY 2008–09 to FY 2025–26.
Though the foundation expressed willingness to cooperate, it requested copies of the underlying MCA orders to understand the scope of the inquiry. Following non-compliance with reminders, the SFIO issued summons on July 20, 2026, to the foundation's current director Tina Ambani and former director Jai Anshul Anil Ambani. The foundation subsequently approached the Delhi High Court under Article 226 of the Constitution.
Arguments Before the Bench
- Petitioner's Submissions: Senior Advocate Rajiv Nayar, appearing for Mandke Foundation, contended that withholding the MCA orders authorizing the investigation was arbitrary and violative of Articles 14 and 21 of the Constitution. He argued that without these orders, the entity could not evaluate the exact legal scope or basis of the probe.
- Respondent's Submissions: Additional Solicitor General (ASG) Chetan Sharma, representing the Central Government and SFIO, submitted that the investigation remains at a preliminary stage where no formal prosecution has been launched. The Union argued that MCA orders contain sensitive details concerning multiple interconnected companies, and disclosure would jeopardize ongoing proceedings before the Bombay High Court and other forums.
Court's Rationale and Order
Justice Swarana Kanta Sharma rejected the foundation's contentions, emphasizing that the Section 217 notice explicitly communicated the context, category of documents, and reason for the request.
"No enforceable right has been made out by the petitioner to seek disclosure of the MCA Orders and the underlying material at this preliminary stage of the investigation,” the Court observed.
The Bench noted that the foundation had failed to furnish the requested records despite receiving prior notices. The Court highlighted that premature disclosure of investigative orders risks compromising wider corporate investigations involving multiple entities.
The High Court clarified that if any adverse or prejudicial statutory action is initiated against the petitioner at a later stage, the foundation remains free to exhaust all remedies available under the law.
Case Summary
- Case Title: Mandke Foundation v. Union of India & Anr.
- Case Number: W.P.(C) 10462/2026
- Bench: Hon'ble Dr. Justice Swarana Kanta Sharma
- Date of Judgment: July 29, 2026
- Counsel for Petitioner: Senior Advocate Rajiv Nayar along with Advocates Arshdeep Singh Khurana and Neeha Nagpal
- Counsel for Respondents: ASG Chetan Sharma with CGSC Nidhi Raman and CGSC Kamlendra Mishra
Discription: NEW DELHI — The Delhi High Court has held that entities called upon during a Serious Fraud Investigation Office (SFIO) probe cannot demand disclosure of Ministry of Corporate Affairs (MCA) orders or investigative material at a preliminary stage.
A Single Bench of Justice Swarana Kanta Sharma dismissed a petition filed by Mandke Foundation—a charitable institution running Kokilaben Dhirubhai Ambani Hospital, where Tina Ambani serves as a director. The SFIO sought financial records from 2008–09 to 2025–26 regarding transactions with Reliance group entities.
The Court ruled that the petitioner holds no enforceable right to access confidential MCA orders during an active probe, noting that premature disclosure could prejudice ongoing wider investigations.