The case involving fraudlent activities related to the Initial Public Offering (IPO) of Yes Bank Ltd. and Infrastructure Development Finance Company Ltd. (IDFC) has been returned back to the Bombay High Court for further consideration. The case, which centers around allegations of cornering shares meant for retail investors, involves the Central Bureau of Investigation (CBI) and several accused individuals, including Manojdev Gokulchand Seksaria.
Background of the case
The case started in 2005 when the IPOs of Yes Bank Ltd. and IDFC were opened for subscription. On complaints from the Securities and Exchange Board of India (SEBI) the CBI registered two criminal cases in 2006. The allegation included fraudulent activities regarding the IPO. The case been through alot of legal proceedings since then. In 2009, Seksaria reached a settlement with SEBI by paying a significant sum as a part of the consent order. However, despite the settlement, the criminal proceedings initiated by the CBI continued. Seksaria then approached the Bombay High Court seeking the quashing of the chargesheets, but his plea was dismissed in 2018. After a series of legal twists and turns, the matter finally reached the Supreme Court.
Supreme Court's Verdict
On August 22, 2024 a ruling was passed by the court stating;
“We feel that on the facts of this case considering the earlier order of the Division Bench and the order of this Court granting liberty to file a fresh petition, the present case in the second round ought to have been heard by the Division Bench. We are refraining from pronouncing on the aspect of whether there was any clever manipulation of the prayers to clutch at jurisdiction since anything said would prejudice the case of the parties. We say nothing more on this at this stage.”
The Supreme Court further added:
“As to whether the respondent had made out a case for quashing the proceedings will be independently decided by the Division Bench which will now hear the matter on remand. The Division Bench will not be influenced by the observations of the previous Division Bench in Writ Petition 406 of 2018, the order of this Court dated 07.10.2020, the order of the Single Judge in Writ Petition No. 245 of 2020 and Writ Petition No. 730 of 2020, and also by the present order which we have now passed. The Division Bench will independently decide the matter on its own merits and in accordance with law.”
The Supreme Court concluded:
“In view of what we have held above, the impugned order dated 05.01.2022 in Writ Petition 245 of 2020 and Writ Petition No. 730 of 2020 is set aside and the matter is remitted to the High Court of Judicature at Bombay. On such remand, let the papers be placed before the learned Chief Justice of the High Court of Judicature at Bombay, for placing the same before an appropriate Division Bench.”
TAGS: CBI vs Manojdev Seksaria Supreme Court Bombay High Court IPO fraud SEBI consent order criminal proceedings quashing cognizance orders Division Bench remand legal jurisdiction Special Leave Petition
