Delhi High Court blocks SFIO investigation into Moser Baer
The Delhi High Court has quashed the corporate affairs ministry’s order directing the Serious Fraud Investigation Office (SFIO) to probe Moser Baer India Ltd (MBIL) and its subsidiaries for suspected irregularities, saying the directive failed to withstand legal scrutiny.
The court’s ruling earlier this week came on a plea filed by Nita Puri, former director of MBIL and sister of former Madhya Pradesh chief minister Kamal Nath. Puri had challenged the SFIO probe on the grounds that two forensic audits commissioned to examine alleged diversion of funds, siphoning of assets and fraudulent transactions had failed to reveal irregularities. Despite this, the ministry of corporate affairs (MCA) relied on those reports to order an investigation.
