Relief for Madhabi Puri Buch & others for now; FIR filing on hold till next hearing

In major relief to former SEBI chief Madhabi Puri Buch along with officials of the market regulator and the current chairman and CEO of stock exchange BSE, the Bombay High Court on Tuesday ordered a stay on a special Mumbai court order that directed the Anti Corruption Bureau to register a first information report (FIR) against them in an allegedly illegal listing of Cals Refinery back in 1994. In legal parlance, a stay means a temporary suspension of an earlier legal proceeding.

Now, the registeration of FIR, as ordered by the special Mumbai court last week, is on hold until the next hearing, the Bombay High Court said.

The Bombay High Court is due to hear the matter further in about four weeks.

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Last week, after the Mumbai court ordered the Anti Corruption Bureau to lodge the FIR against Buch and others named in the matter, SEBI and BSE said they would take appropriate legal steps to challenge the ruling. BSE also said that there was no merit in the complainant's allegations.

Besides Buch, the market regulator’s Whole-time Members Ashwani Bhatia, Ananth Narayan G and Kamlesh Chandra Varshney, and BSE's current MD and CEO Sundararaman Ramamurthy and chairman Pramod Agarwal were also named in the case.

Judge SE Bangar issued the special court's order after reviewing a petition filed by a journaliset alleging major financial fraud and corruption in the listing of Cals Refinery shares.

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