Magistrate court initiates proceedings against Ketan Shah

FTIL had accused Ketan Shah of posting false and misleading information about the company and its officials on social media

The additional metropolitan magistrate court at Ballard Pier in Mumbai has ordered the defamation case filed by Financial Technologies (India) (FTIL) against Ketan Shah, founder member of NSEL Investors’ Action Group, be processed.

FTIL had filed the defamation suit early this month, accusing Shah of posting false and misleading information on various social media sites. After hearing the complainant, the court ruled, “A prima facie offence of defamation is made out against the accused (Shah) hence, issue process to the accused for the offence punishable under Section 500 of the Indian Penal Code, 1860.”

The court order, verified by Business Standard, mentions the accused (Shah) has used the language which causes defamation of the complainant company and its founders. The order mentions “Besides making defamatory comments, it (the social media posts) are not buttressed by any supporting evidence by the accused towards its veracity.” Senior criminal lawyer Majeed Memon from MZM Legal represented FTIL before the court, during which he vehemently made out a case of gross damage caused by irresponsible abuse of the Twitter platform by the accused.

FTIL has prayed that Shah be directed to pay a compensation of Rs 0.99 crore to any government charitable hospitals. It also asked that Shah be directed to remove all the derogatory remarks from social media and he desisted from writing derogatory or defamatory content in the media, including social media.

Shah told Business Standard he said he would challenge the order.