3 min readMumbaiMar 4, 2025 01:19 PM IST
First published on: Mar 4, 2025 at 12:01 PM IST
The Bombay High Court Tuesday stayed an order passed by the special ACB court on Saturday, which had directed the filing of an FIR against six people, including former Sebi chairperson Madhabi Puri Buch, in a case of alleged stock market fraud and regulatory violations.
“It appears that the Learned Judge has passed the order mechanically without going into the details and without attributing any specific role to all the applicants, hence order is stayed till the next date,” ordered Justice Shivkumar Dige, granting four weeks’ time to the complainant to file a reply on the petitions filed by the six.
On Saturday, special ACB judge S E Bangar had directed the Maharashtra Anti-Corruption Bureau (ACB) to file an FIR based on a complaint by Dombivali resident Sapan Shrivastava, who alleged that he and his family had suffered losses after investing in Cal Refineries.
The complainant had alleged regulatory violations and sought a probe into sections of cheating, forgery and criminal conspiracy of the Indian Penal Code and sections of the Prevention of Corruption Act.
Buch, three Sebi whole-time members, Bombay Stock Exchange (BSE) chairman Pramod Agarwal and CEO Sundaraman Ramamurthy, had filed petitions seeking to quash the order.
Solicitor General Tushar Mehta, who represented the Sebi officials, said the complaint was ‘vexatious’ and had no specific allegations. He submitted that the complainant sought a probe into an IPO dating back to 1994, when these six named in the complaint were not appointed to Sebi or the BSE. He also submitted that the complainant had been directed to pay a fine in an earlier judgment of the high court for filing a frivolous petition.
Senior advocate Amit Desai, representing the two BSE officials, said the complainant had made scandalous statements which have serious ramifications for the economy since vague allegations are made against principal capital market regulatory body members.
He also said that the special court judge had erred in not ensuring compliance under the Prevention of Corruption Act which requires a sanction for investigating public servants. Desai also pointed out that the company in question was delisted from the BSE in 2019, while the complaint was filed before the court in March 2024.
Senior advocate Sudeep Pasbola, appearing for Buch, also said the action could not have been taken on vague allegations made by the complainant.
The complainant Shrivastava sought time to file a reply to the petitions. Granting him time to file a reply, the court posted the hearing for four weeks from now while staying the order.
Madhabi Puri Buch 
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