The Delhi High Court has disposed of a petition filed by Religare Enterprises Ltd (REL) against the Securities and Exchange Board of India (SEBI) for allegedly inaction in the matter of the company’s financial irregularities.
Religare Enterprises Ltd had filed a petition in the Delhi High Court in 2018, seeking directions to SEBI to take immediate action against the company’s founders, including Malvinder Mohan, to stop the alleged siphoning off of funds and to take control of the company.
The petition came after Religare Enterprises Ltd accused its founders, including Malvinder Mohan, of siphoning off funds, misusing company assets, and engaging in illegal activities. The company had also accused them of making false promises to investors and causing wrongful loss to the company.
However, the court has disposed of the petition after SEBI on April 14, 2022, seized and takes over the management of Religare Enterprises Ltd in the wake of the alleged financial irregularities. The court noted that since SEBI has taken proactive steps and seized the management of the company, it is appropriate to dispose of the petition.
The court also noted that SEBI’s takeover of management is a more effective and efficient way to investigate the allegations and take necessary actions, rather than the court’s intervention. The court ordered that the matter be disposed of and as such, there is no need to maintain the petition further.
It is worth noting that the SEBI had taken various measures, including issuing show-cause notices to the company’s top officials, freezing the bank accounts, and taking control of the company’s assets, to investigate the financial irregularities. The developments have come as a huge blow to the promoters of Religare Enterprises Ltd, who had been accused of diverting funds and engaging in other irregularities.
The case highlights the importance of regulatory bodies, such as SEBI, in protecting the interests of investors and ensuring that companies are run in a transparent and ethical manner. It also underscores the need for companies to maintain transparency and accountability in their operations, and to not engage in any activities that can harm the interests of investors and stakeholders.