Bombay High Court Stays FIR Against Former SEBI Chief

The Bombay High Court has suspended a Mumbai Special Court's order against ex-SEBI Chairperson Madhabi Puri Buch and others regarding a 1994 IPO fraud. The court criticized the mechanical nature of the FIR filing and will review the case in four weeks.

The Bombay High Court has temporarily halted the order from a Mumbai Special Court that directed the filing of an FIR against former SEBI Chairperson Madhabi Puri Buch and five others. This action pertains to alleged fraud in an IPO dating back to 1994.

Notices have been issued to the stakeholders involved, with the court pointing out that the special court's FIR order was issued without delving deeply into the case specifics. The review of the case is set for four weeks from now.

In March 2025, the Special ACB Court in Mumbai had instructed an FIR to be launched over accusations that include financial fraud and regulatory violations. The allegations involved the listing of Cals Refineries Ltd with purported involvement by regulatory authorities.

The Securities and Exchange Board of India (SEBI) challenged the court's decision, arguing the officials accused were not in their respective official roles during the alleged fraud in 1994. SEBI expressed discontentment over the 'mechanical' process of the court's decision and labeled the accuser as a habitual litigant.

(With inputs from agencies.)