Extraordinary transfer of investigation requires strong prima facie evidence; public-domain allegations alone are insufficient for judicial interference.

Transfer of investigation to a special agency is an exceptional judicial measure, available only on strong prima facie material showing bias, wilful inaction or a real risk of failure of justice. On the material presented, the court found that regulatory authorities had already initiated inspections and special audit processes under the relevant company and housing finance frameworks, and that the allegations of fund diversion and round-tripping rested mainly on newspaper reports, public-domain material and unverified assertions. As a result, extraordinary judicial interference was declined and no direction for SIT transfer or further supersession of the statutory process was warranted.

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Issues: Whether the allegations of fund diversion, round-tripping and regulatory violations warranted transfer of investigation to a special investigation team or other extraordinary interference by the Court.

Analysis: The pleadings and material were examined against the backdrop that judicial transfer of investigation is an exceptional power to be used sparingly and only where there is cogent material showing wilful inaction, bias, or a likely failure of justice. The record showed that the competent regulatory authorities had already initiated inspections and special audit measures, including inspection under the Companies Act, 2013 and audit under the National Housing Bank Act, 1987, and that a substantial part of the impugned loans had either been repaid or were being examined in the regular regulatory process. The allegations rested largely on newspaper reports, public-domain material and unverified assertions, without sufficient evidentiary support to justify superseding the statutory agencies.

Conclusion: The request for extraordinary intervention and transfer of investigation was rejected, and no direction for SIT or further judicial interference was warranted.

Ratio Decidendi: Transfer of investigation to another agency can be ordered only in rare and exceptional cases on strong prima facie material showing bias, deliberate inaction, or a real risk of failure of justice; mere allegations and public-domain material are insufficient.

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