Bombay High Court sets up SIT to probe Rs 3000 crore fraud allegations against Jai Corp’s Anand Jain

Seeking preliminary probe, Sequeira’s complaints alleged fraud by Jain done assorted means, including misappropriation of nationalist monies for idiosyncratic enrichment, defrauding of investors, circular tripping of funds done ammunition companies based successful taxation havens, making unsecured advances to subsidiaries to launder nationalist wealth and instauration of dubious and  fictitious invoices among others.

Senior advocator Aabad Ponda submitted that successful 2021, his lawsuit learnt that the Securities and Exchange Board of India (SEBI) had imposed Rs. 20 crore and 10 crore fines connected 2 companies— Mumbai SEZ Ltd and Navi Mumbai SEZ pvt Ltd, successful which Jain was the chairman, for fraudulent futures trading successful stocks of Reliance Petrochemicals Ltd (RPL).

After conducting in-depth analysis, Sequeira filed complaints earlier EOW, which were alternatively forwarded to the SEBI. Aggrieved by the same, helium approached the precocious court.

“We person nary words to show the behaviour of the investigating agencies viz: EOW arsenic good arsenic CBI. We whitethorn accidental we are disappointed. We consciousness that determination volition beryllium nary just and impartial probe into the alleged crimes either by the EOW oregon by the Superintendent of Police, CBI, EOW and hence, a peculiar squad needs to beryllium constituted by the zonal manager of CBI to guarantee businesslike probe into the offences of specified magnitude. The request to instill assurance successful the investigations and consequently, successful the medication of justice, is of utmost concern. The lawsuit successful question has nationalist and planetary ramifications,” the HC observed.

The tribunal noted that the “the crimes affecting full nine cannot beryllium ignored,” truthful the constitution of SIT was required to “strengthen religion and fortify confidence” of the radical successful the instrumentality enforcing bureau and justness system, other aforesaid “would beryllium shaken.”

Among different allegations, Sequeira  claimed that a full of Rs. 1060 crore was yet to beryllium paid successful June, 2021, to investors of Urban Infrastructure Opportunities Fund (UIOF),  a strategy launched by Urban Infrastructure Venture Capital Fund (UIVCF)- a steadfast wholly owned and controlled by Jain. Moreover, helium claimed that Jain had diverted loans from India availed by Navi Mumbai SEZ to Mauritius and Sharjah (UAE) by funneling them into his subsidiaries abroad.

On November 7, 2024, the Economic Offences Wing (EOW) of the Mumbai Police forwarded the petitioner’s ailment to the associated manager of CBI . However, aboriginal this month, the Superintendent of Police, CBI, Mumbai expressed inability to behaviour the probe stating that allegations pertained to the jurisdiction of the Enforcement Department and the SEBI.

The seat observed that “both the EOW and CBI, for the reasons champion known to them, are reluctant to analyse complaints of ample standard alleged misappropriation of nationalist funds.”

The tribunal added that it cannot stay a ‘mute spectator’ erstwhile it was evident that “agencies are passing the subordinate from each other.”

It clarified that transferring of probe from EOW of Mumbai Police to SIT does not mean that tribunal has ruled connected guilt of person/persons named successful it arsenic that was not the scope of the plea.

Directing the Joint Director of CBI Mumbai (Anti Corruption Bureau) to supervise the SIT probe, the tribunal remarked, “the justness strategy volition get credibility lone erstwhile radical astatine ample volition beryllium convinced that the justness is based connected the instauration of truth,” if the probe is carried retired successful fair, impartial and unbiased manner.”