From Our Bureau
NEW DELHI: The Supreme Court on Thursday set aside the stay order of Delhi High Court on the probe by the Serious Fraud Investigation Office (SFIO) under the Finance Ministry against the Sahara Housing Investment Corporation and other companies of the Sahara group.
A vacation bench of Justices Dr D Y Chandrachud and Bela M Trivedi allowed the petition filed by SFIO against the High Court order. It held that stalling the investigation at the interim stage was unwarranted.
The Bench also directed the High Court to dispose of the writ petitions filed by the Sahara companies at teh earliest, preferably within two months of the reopening after the summer vacation. Its order clarified that it will have no bearing on the merits of the matter.
The SFIO had challenged the Delhi High Court’s orders passed on January 5 this year, staying the investigation against Sahara Housing Investment Corporation Limited, Sahara India Commercial Corporation Ltd, Sahara Prime City Ltd, Qing Amby City Developers Ltd, Sahara Q Shop Unique Products Range Ltd, Sahara India Financial Corporation Ltd, Sahara Q Gold Cart Ltd and the Directors of the Company.
The division bench of the High Court had recorded three reasons for staying the investigations:
— The Companies Act allows the Centre to order an investigation into the affairs of a company within the stipulated period, which was 3 months in the order issued in October 2018 that has expired;
— The order issued in October 2020 for probe into the affairs of 6 companies is contrary to Section 219 of the Companies Act as these companies are neither holding nor subsidiary companies or being managed by the Managing Director of the earlier three companies under the investigation; and
— No reasons furnished compelling the Centre to initiate the investigation.
Solicitor General Tushar Mehta, appearing for the SFIO, told the court that it is an investigation into money transactions among layers of companies to teh tune of Rs one lakh crore and as such it could not be completed in three years.
He also objected to the High Court order staying the look-out circulars issued against the directors, promoters and employees so that they do not flee the cvountry. “This is an extraordinary order to stay the probe…There is no mandate under the law that the probe will come to an end if it is not completed within three years,” the SG submitted.
Appearing for Sahara group, senior advocate Kapil Sibal said the Companies Act 2013 cannot be applied to the transactions relating to 2011 under the SFIO investigations and as such the investigation is without legal basis. Moreover, there is no prima facie materials against the companies, he submitted.
He also pointed out that the Sahara Housing Corporation Ltd has already deposited Rs 24,000 as per the Supreme Court’s judgment in 2012.