Summary: The Bombay High Court has decided not to drop criminal cases against Manojdev Gokulchand Seksaria and others involved in a scam related to IPOs of Yes Bank and IDFC. The court emphasized the serious nature of the crimes, which affected everyday investors and the financial market.
Manojdev Gokulchand Seksaria, along with others, was involved in a plan to illegally grab shares meant for everyday investors during the Initial Public Offerings (IPOs) of Yes Bank and IDFC. They used fake accounts and tricked the system to get shares, which were then sold for profit, hurting real everyday investors.
The Central Bureau of Investigation (CBI) filed criminal cases against Seksaria and others under various sections of the Indian Penal Code, including planning and making fake documents, as well as under the Prevention of Corruption Act. The charges were serious, involving the creation of fake bank and Demat accounts to trick the IPO process.
Seksaria had earlier reached an agreement with the Securities and Exchange Board of India (SEBI), agreeing to pay a significant amount as repayment and settlement charges. However, this did not cover the criminal cases started by the CBI.
"The Settlement Order dated 7th December, 2009, and the payments made by Manojdev Gokulchand Seksaria do not affect the current criminal cases."
The court, led by Judges Ranjitsinha Raja Bhonsale and A.S. Gadkari, emphasized that the crimes were not just private issues but had a bigger impact on society and the financial market. The court highlighted that allowing the dropping of such cases would weaken the honesty of the financial system and public trust.
The scam had a big impact on everyday investors, who were deprived of their rightful chance to participate in the IPOs. The court noted that the actions of Seksaria and others were harmful to the proper development of the securities market.
The decision highlights the importance of keeping the financial markets honest and protecting the interests of small investors. The court's ruling shows that financial crimes with wide-reaching impacts cannot be easily settled through money alone.
