The Telangana High Court has rejected an appeal by the National Stock Exchange (NSE), its MD and CEO, Vikram Limaye, and Chief Regulatory Officer, Priya Subbaraman, to drop their names from a first information report (FIR) against them in the matter involving Anugrah Stock and Broking. The Hyderabad police had registered an FIRunder sections 409 and 420 of the Indian Penal Code (IPC).

Justice K Lakshman said, “The proceedings against directors can be quashed if the evidence does not indicate any role played by such directors. Availability of evidence is sine qua non (essential condition) to determine whether any specific allegations are made against the directors. In other words, the proceedings against directors cannot be quashed if the role played by them in the commission of the offence is unclear and the investigation is not completed.”

The judge said that given the extent of the alleged fraud and the parties involved, the court is not inclined to interfere with the investigation at this stage. NSE and the two officials had argued that they had no role to play in the broker-related matter and had actually initiated action.

“An individual who has perpetrated the commission of an offence on behalf of a company can be made an accused, along with the company, if there is sufficient evidence of his active role coupled with criminal intent,” the HC observed.

Investor complaint

T Ravi Prakash, a Hyderabad-based investor had filed the FIR against Anugrah Stock and Broking founder and director, Paresh Kariya; Anil Gandhi, proprietor of Teji Mandi Analytics; NSE, Limaye, Subbaraman, Edelweiss Custodian Services (Edelweiss) and Central Depository Services (CDSL).

The complainants said that entities “with a common intention deceived and caused a wrongful loss of ₹1.87 crore to him and his wife. Advocate Ravichandra Hegde of Parinam Law Associates is assisting the complainants.

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