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Delhi HC asks government to take a stand in agro companies' scam

The Delhi high court has directed the finance ministry to make its stand known on a petition alleging swindling of Rs 22 billion to Rs 100 billion of investors' money by dubious and fraudulent agro-forestry companies in connivance with the Securities and Exchange Board of India and its chairman D R Mehta.

A division bench, comprising acting Chief Justice Mahinder Narain and Justice Mukul Mudgal also asked the ministries of law and company affairs, agriculture, environment and forests, Delhi government, the Registrar of Companies and Association of Agri Plantation Companies of India to place the affidavits within one week and adjourned the matter to September 10.

Only SEBI had filed its reply till date on the petition moved by investors seeking actions against erring SEBI officials and others.

The court had, at the last date of hearing, directed SEBI to take actions under Section 24 of the SEBI Act in cases it found necessary. The AAPCI was directed to place on record a report on the credit amount of each of the agro investment companies.

The petition filed by S D Bhattacharya, president of Forum of Investors of Agro Forestry Companies of India, has raised questions of public importance regarding serious dereliction of duty, misconduct and fraudulent acts of omission and commission by SEBI and Mehta, besides some other respondents in collusion with some of the fraudulent agro plantation companies and negligence on the part of some other respondents including the finance ministry and AAPCI.

UNI