Legal News | September 11

Allegations of Concealment and Conflict of Interest Surround SEBI’s Adani Group Investigations

In a significant legal development, a petitioner has accused the Securities and Exchange Board of India (SEBI) of concealing vital information related to the Adani Group’s alleged market manipulations. The petitioner, Anamika Jaiswal, filed an affidavit in the Supreme Court, claiming that SEBI has a conflict of interest in investigating the Adani Group.

 The affidavit also highlights the suppression of facts by SEBI, including a 2014 Directorate of Revenue Intelligence (DRI) alert regarding potential stock market manipulation by the Adani Group, which allegedly siphoned off money through overvalued imports. The affidavit contends that SEBI’s investigation excluded crucial time periods and failed to establish the economic interests of certain foreign portfolio investors (FPIs).

Furthermore, it suggests a conflict of interest involving Mr. Cyril Shroff, whose daughter is married to a member of the Adani family. The petitioner also mentions opaque investment funds based in Mauritius that traded Adani stocks and implicates SEBI in amending regulations favouring the Adani Group. These allegations raise concerns about transparency and integrity within SEBI’s investigations into the Adani Group’s activities.

Supreme Court Protects DBS Bank Directors from Prosecution for Lakshmi Vilas Bank’s Pre-Amalgamation Acts

The Supreme Court has ruled that DBS Bank and its directors, appointed after the amalgamation with Lakshmi Vilas Bank (LVB) with the RBI’s approval, cannot be criminally liable for actions attributed to former LVB directors. The court emphasised the importance of safeguarding public confidence in the banking system during LVB’s financial crisis.

The ruling quashes ongoing criminal proceedings against DBS Bank related to LVB’s actions. The government had ordered the non-voluntary amalgamation of DBS with LVB to protect stakeholders’ interests. The key issue revolved around the interpretation of a notification clause concerning the transfer of criminal proceedings to the new bank.

The court clarified that DBS and its directors were not involved in LVB’s actions and retained individual liability. It stressed the careful exercise of power to quash criminal investigations when justice demands it. (Case title: DBS Bank India Ltd. v. State NCT of Delhi & Ors)

3rd National Lok Adalat Resolves Over 1.6 Crore Cases, Valued at ₹1223.90 Crores

The 3rd National Lok Adalat, organised by the National Legal Services Authority (NALSA) under the guidance of Supreme Court Judge Justice Sanjay Kishan Kaul and NALSA’s Executive Chairman, successfully settled more than 1.67 crore cases across 35 states and union territories, excluding Delhi and Manipur.

This impressive figure includes approximately 32.27 lakh pending cases and about 1.35 crore pre-litigation cases, with a total settlement amount valued at ₹1223.90 crore. The Lok Adalat addressed various cases, including compoundable offences, revenue disputes, bank recovery cases, motor accident claims, matrimonial disputes (excluding divorces), cheque bounce cases, labour disputes and other civil matters. Justice Kaul highlighted the importance of providing quick and affordable access to justice for the common man, offering directions for future National Lok Adalats.

Bombay High Court Rejects Plea for Private Immersion Pond in Public Park for Ganesh Visarjan

The Bombay High Court has dismissed a plea filed by a former Nationalist Congress Party (NCP) corporator seeking permission to organise Ganesh idol immersion in a private artificial pond within a municipal garden in Ghatkopar for Ganesh Chaturthi. The court ruled that no person or organisation has a fundamental right to create a private immersion pond in a public park maintained by the Municipal Corporation without permission, which is within the discretion of the Corporation.

The court emphasised that civic governance concerns override private religious sentiments. The petitioner had challenged the Corporation’s refusal to grant permission, alleging political influence. The court clarified that it can only review administrative actions if they are procedurally irregular or violate fundamental legal rights.

Supreme Court Rejects PIL Challenging Delhi Lieutenant Governor’s Control Over Services

The Supreme Court declined to entertain a PIL challenging the law that establishes the pre-eminence of the Lieutenant Governor over the elected government in controlling services in Delhi. The bench, including Chief Justice D Y Chandrachud, stated that the Delhi government had already challenged the amended law, making a fresh PIL unnecessary. They considered imposing a cost on the petitioner, which led to the withdrawal of the PIL.

The court clarified that its decision would not affect the previous petition by the Delhi government, which challenged the central government’s ordinance and subsequent law, giving the Lieutenant Governor greater control over service matters. The matter remains pending in the Supreme Court, referred to a five-judge constitution bench.

Delhi Court Reserves Decision on Sharjeel Imam’s Bail Plea in 2020 Riots Case

A Delhi court has reserved its decision on the bail application of student activist Sharjeel Imam, who is arrested under the Unlawful Activities (Prevention) Act (UAPA) for his alleged involvement in the 2020 Delhi riots conspiracy. Imam’s defence argued that he has already served over three and a half years in custody and, considering the maximum sentence of seven years under Section 13 of the UAPA, he is entitled to statutory bail.

They emphasised treating him as innocent until proven guilty. The Delhi Police opposed the application, citing multiple serious offences and argued that the maximum sentence he could receive is 16 years. The 2020 riots occurred during protests against the Citizenship (Amendment) Act (CAA) and the National Register of Citizens (NRC).

Naresh Goyal’s ED Custody Extended Until September 14 in Rs 538 Crore Bank Fraud Case

A special court has extended the Enforcement Directorate (ED) custody of Jet Airways founder Naresh Goyal until September 14. Goyal was arrested on September 1 under the Prevention of Money Laundering Act (PMLA) in connection with an alleged fraud of Rs 538 crore at Canara Bank.

The ED sought a four-day extension to further investigate the case, citing that a significant portion of the siphoned-off funds was held in foreign accounts, with someone in the United Arab Emirates overseeing them. The money laundering case originated from a Central Bureau of Investigation (CBI) FIR against Jet Airways, Goyal, his wife, Anita and former executives related to the alleged Rs 538-crore fraud at Canara Bank.

Supreme Court to Decide on IOA and AIFF Constitution Finalisation on October 20

The Supreme Court has scheduled October 20 for the final disposal of petitions concerning the constitution finalisation of the Indian Olympic Association (IOA) and the All India Football Federation (AIFF). These constitutions were formulated by former Supreme Court judge Justice L Nageswara Rao.

 During the hearing of separate petitions related to the IOA and AIFF, the court mentioned that it will address the raised constitutional issues on the specified date. The Additional Solicitor General stated that objections to the proposed IOA constitution have been tabulated and will be shared with all contesting parties. The court also directed the filing of objections to the AIFF’s draft constitution within three weeks, with the amicus curiae facilitating the tabulation.

Delhi High Court Upholds Acquittal of Man Accused of Forcibly Keeping Minor, Dismissing Rape Charges

The Delhi High Court has upheld the acquittal of a man accused of forcibly confining a minor girl in his house and repeatedly raping her. The court emphasised that while a victim’s testimony alone can establish guilt, a “just decision” should consider overall circumstances.

The State’s appeal against the trial court’s order was dismissed, citing the failure of the prosecution to establish the exact age of the victim and to prove that the accused forcibly engaged in physical relations with her. The court noted the victim’s behaviour, which included visiting the accused’s village claiming to be his wife and not raising alarms during alleged incidents, suggesting a possible “false accusation.” The acquittal of the accused’s father was also upheld.

Supreme Court Extends Interim Protection to Editors Guild Members in Manipur Fact-Finding Report Case

The Supreme Court of India has extended interim protection from arrest to four members of the Editors Guild of India in connection with FIRs registered for publishing a fact-finding report on Manipur violence. The Editors Guild members had visited Manipur at the invitation of the Indian Army to investigate biased reporting on ethnic clashes.

Senior Advocate Kapil Sibal, representing them, requested the case be transferred from Manipur to the Delhi High Court due to difficulties in engaging counsel and vandalism of lawyers’ homes in Manipur. The Solicitor General argued for the case to remain in Manipur. The Supreme Court will decide whether to hear the case in Delhi or Manipur.

Supreme Court Warns SpiceJet of ‘Drastic Action’ If Unpaid Credit Suisse Dues Remain Unsettled

The Supreme Court has directed SpiceJet to pay $1.5 million in unpaid dues to Credit Suisse by September 15. Failure to do so could result in unspecified “drastic action” when the case is heard next on September 22. A third of the amount is part of a monthly settlement plan agreed upon earlier, while the remainder comprises unpaid dues from an agreement reached last year.

SpiceJet’s financial struggles have been compounded by this order, as the airline revealed it was “struggling to stay afloat” in a separate case last month. Credit Suisse and SpiceJet have been in a legal dispute since 2015 over unpaid dues of around $24 million.