Published On : Fri, Feb 3rd, 2017

Jolt to city cops as SC refuses to stay HC ruling in Dabba Trade scam

Supreme Court
In a jolt to Nagpur police, Supreme Court on Friday issued notices to the respondent accused Kanhaiya Thavrani and others while hearing a Special Leave Petition filed by city police in the Dabba Trade Scam case of the city.

The State Government had assailed the order passed by the Nagpur Bench of Bombay High Court, whereby the High Court had held that police have no power to register an FIR or make arrest without a legal complaint by a competent authority like SEBI or other authorities enumerated under the Securities Contract Regulation Act. The High Court had thus held that the action undertaken by the Nagpur Police was like putting the “Cart before the horse” and that Police cannot arrest accused without following the proper process of law.

While issuing notices today, the State through Attorney General of India Mukul Rohatgi pressed very hard for a stay on the order of the High Court. However the Apex Court bench consisting of Justices Pinaki Chandra Ghose and R F Nariman turned down the request for a stay on the order granting anticipatory bails and instead issued notices to further consider the point of Law involved in the matter. The matter would be further considered after 2 weeks.

The Economic Offences Wing (EoW) of Nagpur Police had decided to challenge the verdict of Nagpur Bench of Bombay Court in Supreme Court. The High Court had granted bail to almost all the persons nabbed by the agency and found virtually no evidence and no locus standi to register FIR in the case. EoW was unable to defend its case before the High Court and before the legal onslaught from defence, the prosecution failed to produce any strong evidence before the court to back its sensational claim about transactions worth crores. The High Court in its order had said that only Central or State Government, SEBI or recognized stock exchange were authorized to initiate action by filing complaint before the special court.