UPSC Prelims Practice Questions — SC seeks status reports on bank fraud investigation against Anil Ambani group

Q1. With reference to the Supreme Court's monitoring of the bank fraud probe against the Anil Ambani group as compared with the position before its January 2026 hearing, consider the following statements: 1. In February 2026, the Supreme Court directed the CBI and ED to conduct a 'fair, dispassionate, transparent and time-bound' investigation, whereas earlier the multiple FIRs had been pursued by the agencies without any apex-court supervision. 2. The Supreme Court itself ordered the constitution of a Special Investigation Team (SIT) under the Bombay High Court for a coordinated probe. 3. While the Supreme Court declined to order the arrest of Anil Ambani, it accepted sealed-cover status reports from both the CBI and the ED. Which of the statements given above is/are correct?

1. In February 2026, the Supreme Court directed the CBI and ED to conduct a 'fair, dispassionate, transparent and time-bound' investigation, whereas earlier the multiple FIRs had been pursued by the agencies without any apex-court supervision.
2. The Supreme Court itself ordered the constitution of a Special Investigation Team (SIT) under the Bombay High Court for a coordinated probe.
3. While the Supreme Court declined to order the arrest of Anil Ambani, it accepted sealed-cover status reports from both the CBI and the ED.

• A. 1 and 2 only
• B. 1 and 3 only
• C. 2 and 3 only
• D. 1, 2 and 3

Q2. With reference to the actions taken against the Anil Ambani group in the bank-fraud matter during 2025-2026, which of the following are correctly identified as institutional actions actually taken? 1. The Central Bureau of Investigation registered a fresh FIR in February 2026 in connection with the Bank of Baroda loan exposure. 2. The Enforcement Directorate constituted a Special Investigation Team (SIT) for a coordinated probe pursuant to a direction of the Supreme Court. 3. The Reserve Bank of India directly attached the properties of ADAG entities under its Master Direction on Frauds, 2016. 4. The Bombay High Court, in February 2026, vacated an earlier stay and permitted public sector banks to proceed with fraud classification against the group. Which of the above is/are correctly identified?

1. The Central Bureau of Investigation registered a fresh FIR in February 2026 in connection with the Bank of Baroda loan exposure.
2. The Enforcement Directorate constituted a Special Investigation Team (SIT) for a coordinated probe pursuant to a direction of the Supreme Court.
3. The Reserve Bank of India directly attached the properties of ADAG entities under its Master Direction on Frauds, 2016.
4. The Bombay High Court, in February 2026, vacated an earlier stay and permitted public sector banks to proceed with fraud classification against the group.

• A. 1, 2 and 4
• B. 1, 3 and 4
• C. 2 and 3 only
• D. 1, 2, 3 and 4

Q3. The fresh FIR registered by the Central Bureau of Investigation in February 2026 against Anil Ambani and Reliance Communications in the Bank of Baroda matter invokes provisions of the Indian Penal Code and, additionally, of which one of the following statutes?

• A. Prevention of Money Laundering Act, 2002
• B. Prevention of Corruption Act, 1988
• C. Fugitive Economic Offenders Act, 2018
• D. SARFAESI Act, 2002

Q4. Under the Reserve Bank of India's Master Direction on Frauds (Frauds — Classification and Reporting by Commercial Banks and Select FIs Directions), 2016, what is the principal consequence of a borrower being formally classified as 'fraud' by lender banks?

• A. The borrower and the promoter-directors are debarred from raising finance from banks, NBFCs and the capital market for a stipulated period of five years from the date of full payment of the defrauded amount.
• B. The borrower is automatically declared a 'Fugitive Economic Offender' and the Enforcement Directorate immediately attaches all movable and immovable assets.
• C. The borrower's account is automatically transferred to the National Asset Reconstruction Company Ltd. for resolution outside the Insolvency and Bankruptcy Code.
• D. The Reserve Bank of India directly assumes the role of resolution professional and supersedes the board of the borrower company.

Q5. The investigation into alleged money-laundering by entities of the Anil Dhirubhai Ambani Group, on which a sealed-cover status report was placed before the Supreme Court in 2026, is operationally conducted by the Enforcement Directorate. The Enforcement Directorate functions administratively under which one of the following?

• A. Department of Revenue, Ministry of Finance
• B. Department of Financial Services, Ministry of Finance
• C. Department of Personnel and Training, Ministry of Personnel
• D. Central Vigilance Commission, under the Ministry of Home Affairs