The Madras High Court has quashed proceedings against a retired Judge of the Madras High Court for certain alleged offences under the RBI Act, pending before the Additional Chief Metropolitan Magistrate Court, Economic Offences-I, Egmore here.
In his petition, G. Ramanujam, said he had served as a Judge for 16 years and he had a distinguished tenure. After retirement in 1985, he was requested by many companies to be on their board. He was a Director of Viswapriya Financial Services and Securities Limited. Due to his failing health, he resigned from the company on December 25, 2008, which was accepted by the board.
The Reserve Bank of India filed a complaint against five Directors of the company stating that they were liable for offences under the RBI Act in connection with the publication of an advertisement by the company on February 5, 2009.
The alleged offence was that the company published the advertisement and sold investment products promising generous returns. The petitioner submitted that his resignation had been accepted by the Registrar of Companies on January 30, 2009 itself.
Allowing the petition, Justice A. Arumughaswamy said from a perusal of the records, it was clear that the petitioner had resigned long before and the resignation had also been accepted by the Registrar of Companies. He was of the view that the petitioner was in no way concerned with the complaint.
Allegation was that the company he worked for sold investment products promising generous returns