A Special
Court in Mumbai has directed the Anti-Corruption Bureau (ACB), Mumbai, to
register an FIR against former SEBI chairperson Madhabi Puri Buch, three SEBI
Whole-Time Members, and senior officials of the Bombay Stock Exchange (BSE).
The order
was passed by Special Judge S.E. Bangar (Prevention of Corruption Act) under
Section 156(3) of the Cr.P.C., following a complaint by journalist Sapan Shrivastava
(47). The court noted that the allegations indicate a "cognizable
offence," warranting an FIR under relevant provisions of the Indian Penal
Code (IPC), the Prevention of Corruption (PC) Act, and the SEBI Act. The ACB
has been directed to submit a probe report within 30 days.
The
investigation has been ordered against:
- Madhabi Puri Buch (Former SEBI Chairperson)
- Ashwani Bhatia, Anant
Narayan G, Kamlesh Varshney (SEBI Whole-Time Members)
- Sundararaman Ramamurthy (BSE Director)
- Pramod Agarwal (Public Interest Director,
BSE)
The judge
emphasized the "gravity of the offence", citing prima facie
evidence of regulatory lapses and collusion. The court highlighted the inaction
of SEBI and law enforcement, stating that judicial intervention under Section
156(3) CrPC was necessary to ensure a fair and impartial investigation.
Allegations:
Shrivastava
accused Madhabi Puri Buch and other SEBI and BSE officials of enabling the fraudulent
listing of a company on the stock exchange while failing to take action
against its alleged wrongdoings. He claimed that he and his family invested in
shares of Cals Refineries Ltd (listed on BSE India) on December 13,
1994, and suffered significant losses due to regulatory failures.
According
to the complaint, SEBI and BSE officials manipulated the market by permitting
the company's unlawful listing and failing to protect investor interests,
thereby facilitating corporate fraud.
The case
now awaits further investigation based on the court’s directives.
