Telangana High Court. (PTI Photo)
HYDERABAD: In a setback to the Karvy Stock Broking Ltd, a division bench of the Telangana High Court on Friday declined the firm’s request to set aside the decision of union ministry for corporate affairs in ordering investigation into the affairs of the Karvy company by serious fraud investigation office (SFIO) under Section 212 of the Companies Act.
The bench comprising Chief Justice Satish Chandra Sharma and Justice N. Tukaramji upheld the decision of the union ministry to conduct investigation by the SFIO. With the High Court orders, now the investigation process will be resumed, which was stopped due to the stay orders issued by this court earlier.
Earlier, a single judge also upheld the Union government’s decision. Challenging it, Karvy filed an appeal in 2020. Hearing the case, the court on September 14, 2020, through an interim order, stayed the investigation and further proceedings by the SFIO. The interim order continued for above one year.
On December 22, 2021, the bench headed by Chief Justice Satish Chandra Sharma heard the contentions of both sides and reserved orders. On Friday, the court pronounced the orders, which upheld the decision of the Union government.