The Hindu : HC rejects Dalmia plea

Online edition of India's National Newspaper
Wednesday, Apr 02, 2003

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HC rejects Dalmia plea

By Our Staff Reporter

CHENNAI APRIL 1. The Madras High Court has declined to `either stall or interfere with the investigation' of a case involving the DSQ Software promoter, Dinesh Dalmia, accused of indulging in circular trading of shares which led to the loss of over Rs. 120 crores to the Calcutta Stock Exchange.

Though the case was registered by the Central Kolkata police, Mr. Dalmia moved the Madras High Court for quashing the FIR on the ground that since the Securities and Exchange Board of India had communicated its order cancelling the transfer of shares to the Chennai office of DSQ, the Madras High Court had jurisdiction to pass order on the petition.

In its counter-affidavit, the Kolkata Police contended that the court lacked territorial jurisdiction since the cause of action had wholly arisen within the city limits of Kolkata where the Calcutta Stock Exchange was situated.Upholding the contention that the Calcutta High Court alone had the jurisdiction to consider the case, Justice P. Sathasivam, dismissing Mr. Dalmia's petition, said, a Joint Parliamentary Committee comprising more than 30 Members of Parliament went into the issue and other agencies such as the Reserve Bank of India, Central Board of Direct Taxes and the Enforcement Directorate were involved in the deliberations, Mr. Justice Sathasivam said, "the conclusion of the Committee cannot be ignored lightly. All these events and allegations have to be fully investigated by the agency concerned.

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