March 3rd 2025.
In Mumbai, the Bombay High Court made a request on Monday for the Anti-Corruption Bureau (ACB) to hold off on taking action until March 4th. This is in response to an order directing them to file a First Information Report (FIR) against former Sebi chairperson Madhabi Puri Buch and five other officials for their alleged involvement in stock market fraud and regulatory violations. The individuals mentioned, including Buch and Sundararaman Ramamurthy, managing director of the Bombay Stock Exchange (BSE), filed a plea in the High Court seeking to quash the order issued by a special court on March 1st. They claim that the order, which relates to allegations of fraud during the listing of a company on the BSE in 1994, was passed without proper notice and hearing. The pleas were brought before Justice S G Dige for an urgent hearing and will be addressed on Tuesday. Until then, the ACB has been instructed not to act upon the special court's order.
Representing Buch and three current SEBI directors, Solicitor General Tushar Mehta appeared in court, while senior counsel Amit Desai represented Ramamurthy and former BSE chairman Pramod Agarwal. The pleas argue that the special court's order is illegal and arbitrary, lacking legal grounds as the petitioners were not given an opportunity to speak before the decision was made. The ACB court, led by Judge S E Bangar, had stated that there was sufficient evidence of regulatory lapses and collusion, warranting a thorough and unbiased investigation. The court also expressed its intention to monitor the probe and requested a status report within 30 days. The complaint, filed by a media reporter named Sapan Shrivastava, alleges that the accused were involved in a large-scale financial fraud, regulatory violations, and corruption during the listing of a company on the stock exchange in 1994.
In a statement released on Sunday, SEBI announced that they will be taking legal action to challenge the special court's order and remain dedicated to ensuring compliance with regulations in all matters. They also highlighted that the application seeking an FIR and investigation into the alleged irregularities was granted by the court, despite the fact that the officials in question were not holding their respective positions at the time of the incident. The BSE, in a separate statement, dismissed the application as frivolous and vexatious. They maintain that the allegations are baseless and without merit.
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