High Court Hits Pause on FIR Against Ex-Sebi Chairperson

The Bombay High Court has temporarily halted an FIR against ex-Sebi chairperson Madhabi Puri Buch and other officials. The court found the special court's March 1 order was mechanical, lacking specific detail. Officials seek to quash allegations of 1994 financial fraud and regulatory violations.

The Bombay High Court has granted a four-week stay on an order to file an FIR against former Sebi chairperson Madhabi Puri Buch and five other officials, relating to an alleged stock market fraud. A single bench noted that the special court's March 1 order was passed mechanically, without specifying any roles.

Justice Shivkumar Dige emphasized the lack of detail in the order and suspended its execution until further proceedings. Complainant Sapan Shrivastava has been given four weeks to respond to the petitions filed by the accused, which include Buch, three whole-time SEBI directors, and two BSE officials.

The accused have challenged the legality of the order, which instructed the Anti-Corruption Bureau to register an FIR regarding alleged fraudulent activities during a 1994 BSE listing. The special court had acted on a media reporter's complaint of widespread financial fraud and corruption.