You are here: Home » Current Affairs » News » National

SC asks Centre to ensure scrutiny of allegations against IFCI

The apex court passed the judgement on a PIL filed by NGO Centre for seeking an independent probe

The on Friday directed the Centre to ensure proper scrutiny of all aspects of alleged financial irregularities in the Industrial Financial Corporation of India (IFCI), including serious allegations regarding investments made by and the role of its former chief Atul Kumar Rai.

A bench, headed by Chief Justice T S Thakur, said the purpose of probe was to scrutinise the serious allegations made regarding investments by IFCI.

“In view of the matter and for the aforesaid reasons, we are of the view that it is necessary and proper to issue a direction both to the union ministry of finance and union ministry of corporate affairs to ensure that a proper scrutiny is carried out in respect of the allegations which form the subject matter of these proceedings... including on the basis of the inspection report of the Registrar Of Companies (ROC) dated 8 January, 2013,” the bench, also comprising Justice D Y Chandrachud, said.

“We direct the Union Government to ensure a due and proper scrutiny into all aspects of the matter by the (i) serious frauds investigation officer, (ii) Reserve Bank of India, and (iii) Securities and Exchange Board of India (Sebi).

“The scrutiny, it is needless to add, shall be conducted with due observance of norms of procedural fairness that would include an opportunity to to respond to the allegations,” the bench said, adding that the solicitor general has also not opposed a direction for further independent scrutiny.

The court passed the judgment on a filed by NGO Centre for Public Interest Litigation seeking an independent probe into various alleged financial irregularities which have come to light in recent past in IFCI.

While disposing of the petition, the bench said scrutiny shall be initiated within a month from the receipt of a copy of this judgment and completed in four months thereafter.

It said that after receiving reports of the respective agencies, the Government should expeditiously determine what action was necessary to ensure compliance of law.

The petition, filed through Prashant Bhushan, had alleged also challenged Rai’s appointment as the managing director and chief executive officer of the financial services major.

The bench noted that an investigation into the allegations was done by ROC which gave its report and the Department of Financial Services had forwarded it to IFCI.

image
Business Standard
177 22
Business Standard

SC asks Centre to ensure scrutiny of allegations against IFCI

The apex court passed the judgement on a PIL filed by NGO Centre for seeking an independent probe

Press Trust of India  |  New Delhi 

Gavel, court
Image via Shutterstock

The on Friday directed the Centre to ensure proper scrutiny of all aspects of alleged financial irregularities in the Industrial Financial Corporation of India (IFCI), including serious allegations regarding investments made by and the role of its former chief Atul Kumar Rai.

A bench, headed by Chief Justice T S Thakur, said the purpose of probe was to scrutinise the serious allegations made regarding investments by IFCI.


“In view of the matter and for the aforesaid reasons, we are of the view that it is necessary and proper to issue a direction both to the union ministry of finance and union ministry of corporate affairs to ensure that a proper scrutiny is carried out in respect of the allegations which form the subject matter of these proceedings... including on the basis of the inspection report of the Registrar Of Companies (ROC) dated 8 January, 2013,” the bench, also comprising Justice D Y Chandrachud, said.

“We direct the Union Government to ensure a due and proper scrutiny into all aspects of the matter by the (i) serious frauds investigation officer, (ii) Reserve Bank of India, and (iii) Securities and Exchange Board of India (Sebi).

“The scrutiny, it is needless to add, shall be conducted with due observance of norms of procedural fairness that would include an opportunity to to respond to the allegations,” the bench said, adding that the solicitor general has also not opposed a direction for further independent scrutiny.

The court passed the judgment on a filed by NGO Centre for Public Interest Litigation seeking an independent probe into various alleged financial irregularities which have come to light in recent past in IFCI.

While disposing of the petition, the bench said scrutiny shall be initiated within a month from the receipt of a copy of this judgment and completed in four months thereafter.

It said that after receiving reports of the respective agencies, the Government should expeditiously determine what action was necessary to ensure compliance of law.

The petition, filed through Prashant Bhushan, had alleged also challenged Rai’s appointment as the managing director and chief executive officer of the financial services major.

The bench noted that an investigation into the allegations was done by ROC which gave its report and the Department of Financial Services had forwarded it to IFCI.

RECOMMENDED FOR YOU

SC asks Centre to ensure scrutiny of allegations against IFCI

The apex court passed the judgement on a PIL filed by NGO Centre for seeking an independent probe

The apex court passed the judgement on a PIL filed by NGO Centre for seeking an independent probe
The on Friday directed the Centre to ensure proper scrutiny of all aspects of alleged financial irregularities in the Industrial Financial Corporation of India (IFCI), including serious allegations regarding investments made by and the role of its former chief Atul Kumar Rai.

A bench, headed by Chief Justice T S Thakur, said the purpose of probe was to scrutinise the serious allegations made regarding investments by IFCI.

“In view of the matter and for the aforesaid reasons, we are of the view that it is necessary and proper to issue a direction both to the union ministry of finance and union ministry of corporate affairs to ensure that a proper scrutiny is carried out in respect of the allegations which form the subject matter of these proceedings... including on the basis of the inspection report of the Registrar Of Companies (ROC) dated 8 January, 2013,” the bench, also comprising Justice D Y Chandrachud, said.

“We direct the Union Government to ensure a due and proper scrutiny into all aspects of the matter by the (i) serious frauds investigation officer, (ii) Reserve Bank of India, and (iii) Securities and Exchange Board of India (Sebi).

“The scrutiny, it is needless to add, shall be conducted with due observance of norms of procedural fairness that would include an opportunity to to respond to the allegations,” the bench said, adding that the solicitor general has also not opposed a direction for further independent scrutiny.

The court passed the judgment on a filed by NGO Centre for Public Interest Litigation seeking an independent probe into various alleged financial irregularities which have come to light in recent past in IFCI.

While disposing of the petition, the bench said scrutiny shall be initiated within a month from the receipt of a copy of this judgment and completed in four months thereafter.

It said that after receiving reports of the respective agencies, the Government should expeditiously determine what action was necessary to ensure compliance of law.

The petition, filed through Prashant Bhushan, had alleged also challenged Rai’s appointment as the managing director and chief executive officer of the financial services major.

The bench noted that an investigation into the allegations was done by ROC which gave its report and the Department of Financial Services had forwarded it to IFCI.
image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard