‘Every day, we see double standards of SEBI’: Supreme Court in Sammaan Capital case
Supreme Court bench rips into CBI and SEBI’s investigation actions; Shares of Sammaan Capital, formerly IHFL, plunge 13% at market close
Supreme Court bench rips into CBI and SEBI’s investigation actions; Shares of Sammaan Capital, formerly IHFL, plunge 13% at market close
Supreme Court bench rips into CBI and SEBI’s investigation actions; Shares of Sammaan Capital, formerly IHFL, plunge 13% at market close
Supreme Court bench rips into CBI and SEBI’s investigation actions; Shares of Sammaan Capital, formerly IHFL, plunge 13% at market close
The Supreme Court today took an uncompromising stand on the high-profile Citizens Whistle Blower Forum case seeking an SIT probe into alleged irregularities at erstwhile Indiabulls Housing Finance Ltd (IHFL), now Sammaan Capital. The bench, comprising Justices Surya Kant, Ujjal Bhuyan, and N Kotiswar Singh, made scathing observations about the “double standards” of the Securities and Exchange Board of India (SEBI) and a surprisingly “cool attitude” from the Central Bureau of Investigation (CBI).
During the day, Sammaan Capital plunged, settling around 13 per cent lower at close.
Justice Kant’s rebuke: “Every day, we see double standards of SEBI!” The bench pointed out that while SEBI claims sole authority in certain matters such as property auctions, it appears hesitant to exercise its investigatory powers, raising concerns over possible vested interests.
CBI’s laid-back approach in the investigation drew further judicial ire, with Justice Kant remarking, “We have never seen such a friendly attitude...this is ultimately public money...there is a strong element of public interest.”
The lack of FIR
The case itself revolves around claims of fund round-tripping, violations of the Companies Act, and large-scale siphoning allegedly orchestrated by the promoters of Indiabulls, its subsidiaries, and related parties. Previous agency reports, including one from the CBI, affirmed that allegations of money laundering were “prima facie well-placed,” yet the lack of a registered FIR to kickstart a comprehensive probe was a sticking point in the latest hearing.
ASG SV Raju, representing both the CBI and the Serious Fraud Investigation Office (SFIO), briefed the Court on prior complaints and procedural efforts, but these had not triggered an investigation as expected.
Advocate Prashant Bhushan, for the petitioner, urged that a formal FIR be registered by the CBI, underlining the need for a unified effort by senior officers from the CBI, SFIO, Enforcement Directorate (ED), and SEBI.
Sammaan Capital stock performance
Investor reaction was swift, with Sammaan Capital shares plummeting by 13 per cent following the news.
The bench concluded by demanding a new affidavit from CBI and the production of EOW’s inquiry records on the ED’s complaint.