Madhabii Puri Buch  (Pic: Mint)
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ACB court order against ex-SEBI chief: Bombay HC to hear plea tomorrow

The ACB has reportedly confirmed that it will not proceed with the order until the hearing takes place

Dhanam News Desk

Bombay High Court is set to hear the petitions of former SEBI Chairperson Madhabi Puri Buch and five other officials on March 4, following a special Anti-Corruption Bureau (ACB) court order directing an FIR to be filed against them. The ACB has confirmed that it will not proceed with the order until the hearing takes place, according to a PTI report.

The case revolves around alleged irregularities in granting listing permissions to Cals Refineries Ltd, a company that was allowed to trade on the stock market. The special ACB court in Mumbai, under Judge Shashikant Eknathrao Bangar, ordered the FIR to be registered against Buch and other senior officials, citing concerns over regulatory violations.

Besides Madhabi Puri Buch, the others named in the case include Sundararaman Ramamurthy (Managing Director & CEO of BSE), Pramod Agarwal (then Chairman & Public Interest Director of BSE), Ashwani Bhatia (Whole-Time Member, SEBI), Ananth Narayan G (Whole-Time Member, SEBI), Kamlesh Chandra Varshney (Whole-Time Member, SEBI).

SEBI pushes back

SEBI has challenged the court’s order, arguing that the application for the FIR was approved without giving the regulator an opportunity to present its side of the story. In an official statement, SEBI claimed that the accused officials were not even in their respective roles at SEBI when the alleged irregularities took place.

“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,” the statement read.

A ‘frivolous’ case?

SEBI has also raised questions about the petitioner behind the case, describing them as a “habitual litigant” known for filing legal challenges that are often dismissed. The regulator pointed out that previous cases brought by the same individual had even resulted in court-imposed penalties.

With the High Court scheduled to hear the case on 4 March, all eyes are on the outcome of the proceedings. If SEBI’s challenge is upheld, the FIR may not proceed. On the other hand, if the court sides with the special ACB court’s order, it could lead to further legal trouble for the former SEBI chief and the other officials involved.

(By arrangement with livemint.com)

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