Mumbai: In a significant development, the honourable Bombay High Court summoned the Maharashtra Principal Secretary, Department of Home, and admonished him for the continued lackadaisical approach related to attachment of properties belonging to India Infoline Commodities Ltd. (IICL) in the National Spot Exchange Limited (NSEL) case. Following the rap-on-knuckles, the Principal Secretary Anoop Kumar Singh apologised to the court and assured of action within four weeks, starting March 12, 2024.
The entire EPISODE unfolded following the 7-year-long struggle for justice by investor Mr. Vishvanidhi Dalmia, who had been seeking attachment of properties of IICL, its promoters and directors. Mr. Dalmia, in his third Writ Petition filed on October 2022, had sought direction under MPID Act, within a stipulated timeframe. In the plea, he accused IICL of luring investors to invest on the NSEL platform, leading to significant financial losses.
Senior Advocate Rajiv Chavan, appearing for Mr. Dalmia, said, “IICL, which is a Financial Establishment as per MPID Act, has accepted deposit of Rs. 326 Crore from various investors including my client, and this fact has also been confirmed by the Competent Authority (CA) in its reply filed before the Hon’ble MPID Court. Given this situation, Maharashtra Government is bound to attach the entire deposit amount accepted by IICL.”
The court had on December 15, 2023, directed the Principal Secretary, to file a comprehensive Affidavit, not only dealing with this Petition but the steps it is likely to adopt on the said Affidavit, within six weeks from that day.
On expiry of the six-week period Mr. Avinash Avhad, the learned Special Public Prosecutor appearing for the state, sought another four weeks as last chance to file an affidavit-in-reply. The court, had granted the extension with condition that, if the affidavit-in-reply is not filed within four weeks, it would be constrained to adopt appropriate steps for non-filing of the affidavit.
The matter was adjourned twice until March 12, when the Special Public Prosecutor tendered an affidavit-in-reply on behalf of the State government. Taking the same on record the court noted that the affidavit filed is a 1½ page affidavit and not a comprehensive affidavit, as it had directed. It also observed that the affidavit was bereft of several details and vague.
Taking a serious note of the half-hearted effort of the state, the court said, “Normally, we would have not asked the Principal Secretary, Home Department, Government of Maharashtra to remain present, however, considering the history of the orders passed by this Court from time to time and what is expressed by the Special Public Prosecutor, we deem it appropriate to direct the Principal Secretary, Home Department, Government of Maharashtra, to remain present before us.”
Being admonished by the honourable Bombay High Court, The Principal Secretary assured that state will issue notification for attachment of the properties of IIFL within four weeks.