Mumbai (Maharashtra) [India], March 4 : A single-judge bench of the Bombay High Court has stayed the Mumbai special court order against former SEBI Chairperson Madhabi Puri Buch and five others from filing an FIR in a matter related to alleged fraud in an IPO back in 1994.
The high court, while staying the order to file an FIR against the accused, has issued notices to stakeholders. The matter will be heard next after 4 weeks.
The high court has observed that the special court had not gone into the details of the matter and had passed an order for FIR 'mechanically'.
On March 2, 2025, the Special ACB Court in Mumbai ordered the launching of an FIR against former SEBI Chairperson Madhabi Puri Buch and five others over alleged financial fraud, regulatory violations, and corruption while approving the listing of an IPO.
The allegations pertain to an alleged fraudulent listing of a company on the stock exchange Cals Refineries Ltd. It was alleged that the fraudulent activity was done with the active connivance of regulatory authorities.
Upon reviewing the material on record, the special court noted that the allegations disclose a cognizable offense and, hence, necessitate an investigation.
SEBI challenged the special court order in the Mumbai High Court, defending all SEBI officials charged by the special court, including the former SEBI Chairperson.
"Even though these officials were not holding their respective positions at the relevant point of time, the court allowed the application without issuing any notice or granting any opportunity to SEBI to place the facts on record," SEBI had argued in a statement.
SEBI and BSE said the alleged financial fraud in contention had supposedly happened back in 1994 when none of the charged officials were part of these organisations.
Hitting out at the applicant, SEBI, in the statement, painted him as a "frivolous and habitual" litigant, with previous applications being dismissed by the Court, with the imposition of costs in some cases.
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