Delhi court summons ED director over failure to provide documents in ₹88-crore SEBI fraud case
New Delhi, February 6, 2025
A Delhi court has recently summoned the Enforcement Directorate (ED) director over the Central agency’s failure to supply legible copies of the documents related to the case to the accused booked in ₹88-crore Securities and Exchange Board of India- (SEBI) related cheating and fraud case.
Special Judge Aparna Swami of Patiala House Courts ordered the present director of ED, Rahul Navin, and the Investigating Officer of the case, to appear in court and give in writing the status of the documents to be provided to the accused.
The court, on January 25, noted that the despite repeated adjournments in the almost two and a half years of case, the ED failed to supply the requisite documents to the accused persons.
The accused submitted in the court that they are unable to defend themselves properly in the absence of the documents as they are essential for trial.
During the hearing, counsel appearing for the ED submitted that the copies supplied to the accused were the best copies available with the department.
The next hearing will take place on March 26.
The matter pertains to a SEBI-related cheating and fraud case filed against Gajendra Nagpal, his wife Sonia Nagpal, Ram Mohan Gupta and their companies, which is being investigated by the ED.
In its charge sheet, the Central agency had claimed that one of the companies owned by the accused persons, named Unickon Securities Pvt Limited (USPL), was also registered with the SEBI as stockbroker and depository participant of Central Depository Services Limited (CDSL). The complaint stated that around 4,156 investors approached the SEBI and filed complaints for non-receipt of their funds and securities by the firm from January 2014 onwards.
A probe was ordered in the matter later which revealed that the accused persons illegally indulged in pledging the clients’ securities to various banks and NBFCs for obtaining loans. The loans taken were later diverted, siphoned off and ultimately utilised for the benefit of the directors of the companies owned by the accused persons.
[The Hindu]
