HC grants interim stay on investigation by EOW against Morgan Securities and its promoters
Bombay High Court (HC) granted interim stay on the investigation against Morgan Securities and Credits Pvt. Ltd. and its promoters in an FIR registered by the city police.
The case pertains to a complaint made by a company, Ganesh Benzoplast Ltd, relating to availment of two inter corporate deposits of Rs. 50 lakhs in 2000 from Morgan Securities and Credits Pvt. Ltd.
in respect of which 15000 equity shares of the company amounting to Rs.2.40 crore was pledged with Morgan Securities. It has been alleged by Ganesh Benzoplast Ltd. that Morgan Securities fraudulently and intentionally did not sell the pledged shares when asked by Ganesh Benzoplast and sold the pledged shares to its sister concern later on the date when the market value of shares was much higher.
The bench of Justice RN Laddha and Justice Nitin Sambre granted three weeks time to the police to file reply to the interim application challenging the order passed by Magistrate of rejecting the closure report and directing further investigation. The matter has been adjourned to August 23. In 2022, three directors including Suresh Chand Goyal approached the Bombay HC seeking quashing of the FIR registered by Mumbai police’s Economic Offences Wing (EOW).
In their plea they had claimed the said FIR to be a second complaint levelling the same allegations as made in the first complaint which at the time of filing the petition was subject matter of challenge before the Supreme Court. During the pendency of the matter before the Bombay High Court, EOW had filed closure report before the Metropolitan Magistrate, Mumbai. However, the Magistrate did not accept the closure report and instead directed further investigation.
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