Karvy stock broking limited (KSBL) company filed a writ appeal in the high court challenging a single judge order that refused to interfere in an ongoing central probe into the affairs this company.
The company is facing charges of raising loans on the instruments of its clients without their knowledge and also of diverting a major portion of such money into its realty firm. Centre had ordered a probe by serious fraud investigation office (SFIO).
Contending that this was a premature decision taken without sufficient material and without giving them adequate opportunity to explain their case.
KSBL in its appeal also challenged the notices issued to them by SFIO. The single judge in his order made it clear that the ‘opportunity of being heard’ need not be always a hearing in person. It could be in the form of a written representation by the petitioner and a consideration of the same by the authorities. Such a process too can be termed as an opportunity for the petitioner to drive home their point of view.
The single judge also refused to go into the issue of sufficiency of material before the authorities for ordering a probe. Centre is empowered to order the probe with the material before it, the judge said. Aggrieved by this KSBL filed its appeal questioning the order of the single judge.