Telangana High Court has rejected an appeal by the National Stock Exchange (NSE), its MD and CEO, Vikram Limaye, and Chief Regulatory Officer, Priya Subbaraman, to remove their names from an initial information report (FIR) against them in the case involving Anugrah Shares and Broking. Hyderabad police had registered an FIR under sections 409 and 420 of the Indian Criminal Code (IPC).
Judge K Lakshman said: “The case against directors may be annulled if the evidence does not indicate any role played by such directors. The availability of evidence is sine qua non (material condition) to determine whether specific allegations are made against the directors. In other words, the case against directors cannot be annulled if their role in the commission of the offense is unclear and the investigation has not been completed. “
The judge said that given the extent of the alleged fraud and the parties involved, the court is not inclined to interfere in the investigation at this time. The NSE and the two officials had claimed that they had no role to play in the broker-related case and had in fact initiated action.
“A person who has committed an offense on behalf of a company may be charged with the company if there is sufficient evidence of his active role combined with criminal intent,” HC noted.
T Ravi Prakash, a Hyderabad-based investor had filed FIR against Anugrah Stock and Broking founder and CEO, Paresh Kariya; Anil Gandhi, owner of Teji Mandi Analytics; NSE, Limaye, Subbaraman, Edelweiss Custodian Services (Edelweiss) and Central Depository Services (CDSL).
The plaintiffs said entities “with a common intent deceived and caused an unlawful loss of ₹ 1.87 crore to him and his wife. Attorney Ravichandra Hegde of Parinam Law Associates is assisting the plaintiffs.
April 26, 2022