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The Bombay High Court on Monday directed the Anti-Corruption Bureau (ACB) to halt the proceedings on a Special Court order requiring a First Information Report (FIR) against former Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch, three SEBI officials and two Bombay Stock Exchange (BSE) executives. Justice Shivkumar Dighe issued the interim stay until March 4, 2025, further listing it for an urgent hearing on petitions challenging the legality of the Special Court’s directives.
Special Judge S.E. Bangar of the Prevention of Money Laundering Act (PMLA) court, which is the special court, had ordered the ACB on March 1 to investigate the alleged regulatory lapses, collusion, and market manipulation linked to the 1994 listing of Cals refineries Ltd. The complaint was filed by Sapan Shrivastava, who claims to be a journalist and accused SEBI and BSE officials of facilitating fraudulent listing and their failure to protect the interests of the investors. Shrivastava contended that the losses from investments made in 1994 constituted the conduct by SEBI and BSE, which acted against the law, ignoring corporate misconduct.
The Special court cited evidence of regulatory lapses under Section 156(3) of the Criminal Procedure Code (CrPC), thereby mandating an FIR under the Indian Penal Code, Prevention of Corruption Act, and SEBI Act. The Special court, in its order, emphasized:
Before the Bombay High Court hearing, Solicitor General of India Tushar Mehta, representing Buch, argued that the Special Court had bypassed procedural fairness by not issuing any notice to the accused. Furthermore, Senior Advocate Amit Desai, appearing for BSE officials also highlighted jurisdictional concerns, stating that the PMLA Court lacked the authority to order an investigation under the issue of non-PMLA statutes.
The High Court’s interim stay follows SEBI’s commitment to “ensure due regulatory compliance”. Cal Refineries, which has been suspended from trading since 2017, remains under scrutiny for its alleged listing irregularities.
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Special Judge S.E. Bangar of the Prevention of Money Laundering Act (PMLA) court, which is the special court, had ordered the ACB on March 1 to investigate the alleged regulatory lapses, collusion, and market manipulation linked to the 1994 listing of Cals refineries Ltd. The complaint was filed by Sapan Shrivastava, who claims to be a journalist and accused SEBI and BSE officials of facilitating fraudulent listing and their failure to protect the interests of the investors. Shrivastava contended that the losses from investments made in 1994 constituted the conduct by SEBI and BSE, which acted against the law, ignoring corporate misconduct.
The Special court cited evidence of regulatory lapses under Section 156(3) of the Criminal Procedure Code (CrPC), thereby mandating an FIR under the Indian Penal Code, Prevention of Corruption Act, and SEBI Act. The Special court, in its order, emphasized:
SEBI contested the order, asserting in a press release that Buch and other concerned officials were not holding any office during the relevant period and criticized the complaint as “frivolous” and filed by a “habitual litigant”. BSE also dismissed the allegation as “vexatious” in nature.
Before the Bombay High Court hearing, Solicitor General of India Tushar Mehta, representing Buch, argued that the Special Court had bypassed procedural fairness by not issuing any notice to the accused. Furthermore, Senior Advocate Amit Desai, appearing for BSE officials also highlighted jurisdictional concerns, stating that the PMLA Court lacked the authority to order an investigation under the issue of non-PMLA statutes.
The High Court’s interim stay follows SEBI’s commitment to “ensure due regulatory compliance”. Cal Refineries, which has been suspended from trading since 2017, remains under scrutiny for its alleged listing irregularities.
The post India High Court temporarily stays FIR order against former SEBI chairperson in fraud case appeared first on JURIST - News.
Continue reading...
Note: We don't have any responsibilities about this news. Its been posted here by Feed Reader and we had no controls and checking on it. And because News posted here will be deleted automatically after 21 days, threads are closed so that no one spend time to post and discuss here. You can always check the source and discuss in their site.