Bombay HC discharges Gautam Adani, Rajesh Adani in market regulations 'violation' case
Mumbai(PTI): The Bombay High Court on Monday discharged Adani Enterprises Ltd, group Chairman Gautam Adani and MD Rajesh Adani from a case of alleged violations of market regulations involving Rs 388 crore, saying no case of cheating or criminal conspiracy was made out.
The Serious Fraud Investigation Office (SFIO) in 2012 initiated the case against the Adani Enterprises Limited (AEL) and its promoters Gautam Adani and Rajesh Adani, and filed a chargesheet, accusing them of criminal conspiracy and cheating.
In 2019, the company and the two industrialists filed a petition in the HC, seeking to quash a sessions court order of the same year refusing to discharge them from the case.
The HC's single bench of Justice R N Laddha on Monday quashed the sessions court order and discharged the duo and the company from the case.
The court in its order said a careful evaluation of the submissions and records makes it "evident that the complaint fails to satisfy the essential ingredients of the offence of cheating".
When the offence of cheating itself is not made out, then even the charge of criminal conspiracy becomes unsustainable, it added.
"A fundamental requirement for an offence under section 420 of the IPC (cheating) is the presence of an element of deception, which leads to the victim suffering from loss while the accused gains wrongfully," the HC said.
However, in the present case, there is a conspicuous absence of any such allegations from an affected party, it said.
"Merely by asserting that the accused has made a wrong gain without demonstrating the corresponding wrongful loss or deception suffered by a specific victim does not suffice to attract the offence of cheating," the court said.
The SFIO sought the bench to stay its order for a period of two weeks so that it could file an appeal in the Supreme Court. Justice Laddha, however, refused to do so.
In December 2019, the high court stayed the sessions court order and it was extended from time-to-time. In 2012, the SFIO filed a chargesheet against 12 persons, including the Adanis, accusing them of criminal conspiracy and cheating.
But a magistrate's court in Mumbai discharged them from the case in May 2014. The SFIO challenged the discharge order.
The sessions court in November 2019 set aside the magistrate's order.
The industrialists, in their petition in the HC, termed the sessions court order as "arbitrary and illegal".
Senior counsel Amit Desai, appearing for the company and its promoters, had argued that no member of the public filed any complaint against them claiming that they were cheated or suffered financial losses and hence the allegation of cheating levelled by the SFIO was baseless.
The SFIO's counsel, Anil Singh, argued that there were sufficient grounds to prosecute the petitioners for the offences of criminal conspiracy and cheating.
The Adanis conspired with the co-accused in the case and manipulated the stock market by divesting their shareholdings at inflated prices and acquiring shares when the prices declined, Singh alleged.
As a result, the petitioners unlawfully gained a huge amount, causing financial loss to the general public and other stakeholders, the SFIO charged.
The case involved allegations of market regulation violations amounting to nearly Rs 388 crore. The case stemmed from concerns over regulatory compliance and financial transactions flagged during an investigation by the SFIO.
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CM Siddaramaiah alleges ‘criminal conspiracy’ in Sringeri recount, vows legal action
Bengaluru (PTI): Alleging a “criminal conspiracy” by BJP candidate D N Jeevaraj in the Sringeri Assembly poll recounting, Karnataka CM Siddaramaiah on Tuesday said the outcome was manipulated after valid postal ballot votes in favour of Congress leader T D Raje Gowda were tampered with during the recounting process.
Following a Karnataka High Court order on an election petition filed by Jeevaraj, challenging Raje Gowda’s election, the reverification and recounting were conducted on Saturday.
After the reverification and recount of postal ballots for the Sringeri Assembly constituency, votes polled in favour of Raje Gowda were reduced by 255, the returning officer said.
A report on the matter has been submitted to the Election Commission of India for further action, the officer added.
Congress leader Raje Gowda had won the 2023 Assembly polls from Sringeri by 201 votes, defeating his nearest rival Jeevaraj.
Addressing a press conference in Bengaluru, Siddaramaiah said the High Court had directed the recounting of postal ballots and that irregularities were noticed during the exercise conducted on May 2.
“This is a clear case of criminal conspiracy,” Siddaramaiah said, alleging that valid votes cast in favour of Raje Gowda were altered after being accepted by counting agents of all parties, including Congress, BJP, and JD(S).
He claimed that during the recounting of postal ballots, 255 votes were initially accepted as valid by all agents but were later tampered with by subordinate officials.
“There is a second mark on the votes polled in favour of Raje Gowda. They had accepted these as valid votes. Subsequently, another mark was made by officials. This is a clear case of criminal conspiracy,” he said.
When asked who was behind the alleged conspiracy, the CM replied, “It was hatched by Jeevaraj and others. It is planned.”
Siddaramaiah further alleged that the returning officer acted improperly by declaring the result despite the presence of an Election Commission observer during the recounting.
“Immediately after the counting, the returning officer announced the result. He should not have done so; this is against the law,” he said.
He pointed out that Raje Gowda had originally won by 201 votes, but after the recounting, the BJP candidate was declared the winner by 52 votes.
“The BJP has committed a criminal act of conspiracy. This is not vote chori but vote dacoity,” he alleged.
The CM said a police complaint had already been filed by Raje Gowda’s election agent, Sudhir Kumar, and emphasised the need for electoral integrity.
“We want transparency and free and fair elections. That is what our Constitution mandates,” he added.
Stating that the government would pursue legal remedies, Siddaramaiah said, “We are preparing an appeal challenging the returning officer’s announcement in a court of law.”
Responding to a separate query on elections in other states, the CM said there appeared to be an anti-incumbency factor in West Bengal, while results in Tamil Nadu were “surprising,” adding that Vijay’s party was emerging as the largest there.
Following the victory of party candidates in Bagalkote and Davanagere South, Siddaramaiah expressed confidence about future electoral prospects in Karnataka.
“Even in 2028, we will win the Assembly elections. We will come back,” the CM said.
Siddaramaiah added that he would order a forensic examination into the alleged tampering of postal ballots.
