2021 (10) TMI 1347 - SCH - Companies Law

Case Update: Court stresses FSL process, financial compliance, property verification.

The court emphasized the need for expediting proceedings at the Forensic Science Laboratory (FSL) and compliance with suggestions from the learned ASG. ... Freezing of Bank Accounts of petitioner - HELD THAT:- In order to facilitate fund availability, in view of the plea of the accused that only 67 accounts out of 241 are de-freezed, the other accounts are to be de-freezed as already directed for the benefit of the investors - Considering the efforts being put in by learned ASG, the FSL to set up a dedicated team to assist the learned ASG in this behalf and if necessary, that can be through a mode of outsourcing. List on 19.01.2022. Issues:1. Compliance with suggestions made in the report of the learned ASG.2. Concerns regarding the speed of the FSL's proceedings.3. Engagement of a Chartered Accountant and a valuer.4. De-freezing of accounts for fund availability.5. Setting up a dedicated team by FSL.6. Deadline for investors to file claims.7. Impleadment of State of Gujarat and State of U.P.8. Verification of property for realization of dues.Comprehensive Analysis:1. The judgment discusses the compliance with suggestions presented in the report of the learned ASG. The respondent/accused have no objections to the suggestions except for two caveats related to frozen accounts and the provision of a hard disc capacity for making copies. The accused agree to deposit a sum of Rs. 10 lakh within two weeks to facilitate the required copies. The court expresses concerns about the speed of the FSL's proceedings and emphasizes the need for efficient technical expertise to expedite the process.2. The court acknowledges the complexity of the data being handled by the FSL but emphasizes the importance of expediting the process. It suggests outsourcing work or engaging additional technical personnel if necessary to ensure timely progress. The court also notes the need for engaging a Chartered Accountant and a valuer as suggested by the learned ASG, with costs to be initially borne by the FSIO.3. The judgment addresses the issue of de-freezing accounts to facilitate fund availability, especially for the benefit of investors. It directs the de-freezing of accounts as previously instructed to ensure the funds are accessible for distribution. Additionally, the court emphasizes the need for a dedicated team to assist the learned ASG and suggests outsourcing if required to enhance efficiency.4. The deadline for investors to file claims is set for 20.11.2021, with instructions for FSIO to publish the necessary advertisement for this purpose. The court schedules the next hearing for 19.01.2022 to monitor progress and compliance with the directives issued.5. In response to IA NO. 139585/2021 regarding intervention/impeachment, the State of Gujarat and State of U.P. are impleaded as parties. The FSIO is directed to examine complaints from these states, with protection continuing for the accused regarding these complaints. An amended memo of parties is to be filed within a week to reflect these additions.6. IA NO. 86403/2021 involves the verification of property for the realization of dues. The court accepts notice of the claimants' concerns regarding the property sought for realization of dues. The learned ASG undertakes to verify the aspect related to this property, and a reply is to be filed within four weeks, to be listed along with the main matter for further consideration and action.