RAJESH KUMAR YADUVANSHI, DR. Vs. SERIOUS FRAUD INVESTIGATION OFFICE (SFIO)

JUDGEMENT

(1.) The petitioner has filed the present petition impugning a summoning order dated 16.08.2019 issued by the learned ASJ in Complaint Case No. 770/2019 captioned 'Serious Fraud Investigation Office (SFIO) v. Bhushan Steel Limited and Ors.', to the limited extent that it directs issuance of summons to the petitioner. The learned Court had found that there was sufficient material placed on record against the petitioner for him to face prosecution in respect of offences under Sections 128, 129, 448 read with Section 447 of the Companies Act, 2013 (hereinafter referred as 'Companies Act'). The petitioner is one of the 287 persons/entities that are accused in the said complaint and against whom summons have been directed to be issued in terms of the impugned summoning order. However, the scope of the present petition is confined in the direction to issue summons to the petitioner.

(2.) The petitioner was Punjab National Bank Limited's nominee on the Board of Directors of Bhushan Steel Limited (hereinafter referred as 'BSL') at the material time. The principal issue that arises for consideration in this case is whether the petitioner can be prosecuted for the alleged fraud committed by BSL and/or promoters solely for the reason that the petitioner was a director of BSL and, whether there is any material on record to indicate that the petitioner was complicit in the commission of the alleged offence.

(3.) The summoning order was issued pursuant to Criminal Complaint No. 770/2019 (hereinafter referred as 'complaint') filed by the Serious Fraud Investigation Office (hereinafter referred as 'SFIO'). The said complaint was filed pursuant to the investigation carried out by SFIO into the affairs of BSL and other companies. The Government of India had by an order dated 03.05.2016 issued directions to SFIO under Section 212(1) of the Companies Act to investigate into the affairs of certain companies (fifteen in number) including BSL. Subsequently, approval was also granted to SFIO to investigate the affairs of other companies based on the material that was collected during the investigation.