The Supreme Court on Thursday set aside a Delhi High Court order staying a Serious Fraud Investigation Office (SFIO) probe into several companies related to the Sahara group.
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A Vacation Bench led by Justice D.Y. Chandrachud allowed the appeal filed by the SFIO against the High Court order. It said the High Court was not justified in staying the investigation.
The SFIO, a corporate fraud investigating agency, had filed an appeal against the High Court stay order of December 13, 2021.
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The High Court had forbidden further proceedings or coercive measures in the case. It stayed the operation and implementation of two orders of the SFIO for an investigation into the companies.
SG’s apprehension
Arguing the appeal, Solicitor General Tushar Mehta had expressed apprehensions about the fate of the probe following the High Court order, saying it would cause serious prejudice.
The High Court had said the Sahara companies made out a prima facie case for grant of interim relief, and the balance of convenience was also in their favour. It concluded that irreparable loss would result if the interim relief was not granted.
In the High Court, Sahara had argued that no reasons were given for the necessity of an SFIO probe into companies like Aamby Valley Ltd., Qing Amby City Developers Corporation Ltd., Sahara India Commercial Corporation Ltd., Sahara Prime City Ltd., Sahara India Financial Corporation Ltd., and Sahara India Real Estate Corporation Ltd.