The Supreme Court has overturned a Punjab and Haryana High Court order that transferred an ongoing investigation to the Central Bureau of Investigation (CBI), stressing that such transfers should not be made casually or without strong justification.

A bench comprising Justices Sudhanshu Dhulia and K Vinod Chandran held that CBI investigations should be ordered by high courts only when there is clear and compelling material that justifies intervention by the central agency.

“Directions for CBI investigation should not be issued routinely or on the basis of vague or unsubstantiated allegations,” the bench observed. “The ‘ifs’ and ‘buts’ without any definitive conclusion are not enough to set an agency like the CBI in motion,” it added.

The judgment came in response to an appeal challenging the high court’s order from May 2024. The case concerned an FIR registered in October 2022 in Panchkula, alleging that the accused impersonated an Inspector General of the Intelligence Bureau and coerced the complainant—who owned a pharmaceutical business—into transferring ₹1.49 crore under threats and extortion.

Claiming bias and possible involvement of local police officials, the complainant approached the high court seeking a transfer of the investigation to the CBI. The high court allowed the plea, prompting the accused to move the Supreme Court.

In its April 2 ruling, the Supreme Court found the allegations made before the high court to be “vague and bald,” lacking any substantive evidence. The primary basis for seeking the CBI probe—that local police officers were known to the accused—was found to be unsubstantiated.

Referring to earlier precedents, the bench emphasized that the mere presence of allegations against local police cannot justify handing over a case to the CBI. It further noted that the Panchkula Commissioner had already formed a three-member Special Investigation Team (SIT), headed by an Assistant Commissioner of Police, to probe the matter.

Taking all factors into account, the Supreme Court allowed the appeal and set aside the high court's decision, reiterating that CBI investigations should be ordered only in exceptional circumstances backed by clear and credible evidence