The Madras High Court has dismissed the plea moved by industrialist A.C. Muthiah seeking to quash proceedings moved against him by the RBI for allegedly publishing financial statements containing false particulars.
The issue pertains to four prosecutions launched by the RBI before the Additional Chief Metropolitan Magistrate, Economic Offences Wing II, Chennai against First Leasing Company of India Limited and its directors Faruk Irani, A.C. Muthiah, Maharaj Jai Singh, and A. Sathish Kumar.
It is the case of the RBI that the four directors of the First Leasing Company had published financial statements for the years 2010, 2011, 2012 and 2013 containing false particulars and statements, in order to make it look as if the company is financially sound. When the plea came up for hearing before Justice P.N. Prakash, senior counsel for the petitioner contended that A.C. Muthiah was only a non-executive Director.
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Counsel for the RBI pointed out that the petitioner had actually chaired board meetings on May 4, 2010, May 5, 2011, May 28, 2012 and May 27, 2013 in which the financial statements for the years were considered.
Judge says there is sufficient material in the complaint to proceed against the petitioner