NEW DELHI: The Delhi High Court on Monday stayed the operation, execution and implementation of two orders passed by the Centre for probe against nine companies of Sahara Group.
A bench of Chief Justice D N Patel and Justice Jyoti Singh issued the order and stayed the investigation after observing that there was a prima facie case in favour of the petitioners and the balance of convenience also lay on their side as the orders were passed in violation of the provisions of the Companies Act.
The counsel appearing for Sahara Group submitted that the first order was passed on October 31, 2018, for an investigation into three companies. It set a time limit of three months from the date of the issue.
However, no extension has been granted in this order and therefore, its effect has come to an end, it was pointed out.
He submitted before the court that without completing the investigation in a time-bound schedule as mandated by Section 212(3) of the Companies Act, another order was passed by the centre on October 27, 2020 handing over the investigation of six more companies to the Serious Fraud Investigation Office (SFIO).
The counsel further argued that as per Section 219 of the Companies Act, the power to conduct an investigation into the affairs of related companies has been given only for subsidiaries or holding companies of the earlier three companies.
However, in the present case, the six companies were neither subsidiaries nor holding companies of the previous three.
The court was also informed that the only SEBI has the power to investigate these matters, but in this instance, the SFIO has been tasked with a probe that again violated the Companies Act.
Diwali is over, no need to continue with petition on firecrackers: HC order
The Delhi High Court disposed of a plea, filed before Diwali, against a complete ban on sale, storage and use of firecrackers, saying there is no reason to continue with the petition as the festival was over.
The plea sought a modification to a September 15 order that imposed the ban on all kind of firecrackers on account of pollution concerns.
The petitioners’ counsel said instead of the absolute ban, authorities ought to opt for green crackers or a graded regulation. The order imposed the complete ban ahead of Diwali, which was celebrated on November 4 2021.