New Delhi: The Delhi HC stays Centre's orders for investigation into nine companies relating to Sahara Group.
A bench of Chief Justice D N Patel and Justice Jyoti Singh said it was of the view that petitioners Sahara Housing Investment Corporation Ltd and others have made out a prima facie case for grant of interim relief and the balance of convenience is also in their favour and if the interim relief is not granted, irreparable loss shall be caused to them.
The high court also issued notice to the Centre and asked it to file response to the petition.
The court stayed the Centre's October 31, 2018 and October 27, 2020 orders till the next date of hearing, that is, January 18.
''... We hereby stay the operation, implementation and execution of the orders dated October 31, 2018 and October 27, 2020, passed by the respondents as well as subsequent actions and proceedings initiated pursuant thereto, including coercive proceedings and look-out notices, qua the petitioners herein, till the next date of hearing,'' the bench said.
It further said, ''There was thus a clear mandate by the Central Got to complete the investigation within three months from the date of the issue of the order, that is, October 31, 2018. However, the probe was not completed within the stipulated time and as asserted by the petitioners, the same is still ongoing. Prima facie, there is violation of Section 212(3) of the Companies Act and the direction of the Central Govt.'' The petitioners submitted that the first order was passed by the govt on October 31, 2018 for investigation into the affairs of three firms -- Sahara Q Shop Unique Products Range Ltd, Sahara Q Gold Mart Ltd & Sahara Housing Investment Corporation Ltd.
The order had mentioned that the investigation report shall be submitted by the inspectors to the government within three months from October 31, 2018. However, no such report was rendered within three months and in fact even today, despite passage of more than three years, the investigation is still ongoing, the petitioners said.