Mumbai, March 4: The Bombay High Court temporarily stayed the Mumbai special court's order that directed the filing of an FIR against former SEBI Chairperson Madhabi Puri Buch and five others on Tuesday. The case pertains to alleged fraudulent activity related to an Initial Public Offering (IPO) dating back to 1994.
The high court issued notices to relevant stakeholders while staying the order to file an FIR against the accused. The matter is set to be heard again in four weeks. The court remarked that the special court had not sufficiently examined the case details and had issued the FIR order in a "mechanical" manner.
On March 2, 2025, the Special ACB Court in Mumbai ordered the registration of an FIR against Buch and five others over allegations of financial fraud, regulatory violations, and corruption related to the approval of the listing of Cals Refineries Ltd. The fraud was allegedly carried out with the involvement of regulatory authorities. The special court noted that the allegations pointed to a cognizable offense, thereby necessitating an investigation.
In response, SEBI challenged the special court's ruling in the Bombay High Court, defending the officials implicated, including the former SEBI Chairperson. SEBI contended that these officials were not in their respective positions at the time of the alleged offense and that the special court had granted the application without providing SEBI an opportunity to present the facts.
Both SEBI and the Bombay Stock Exchange (BSE) maintained that the alleged fraud occurred in 1994, long before the officials were in their positions. SEBI also criticized the applicant, labeling them as a "frivolous and habitual" litigant, noting that previous applications had been dismissed by the court, sometimes with costs imposed on the applicant.
