https://www.taxtmi.com/caselaws?id=770139 Karnataka HC held that SEBI's investigation order under Section 11-C was unsustainable due to lack of reasonable grounds. The court found that SEBI merely reiterated allegations from a withdrawn complaint without considering the entity's replies or compelling circumstances warranting suo motu investigation. The decision was flawed as internal notings remained unapproved by the competent authority and failed to demonstrate necessary reasons and belief for investigation. The court emphasized that state action must be reasonable and non-arbitrary, quashing the investigation order for want of proper application of mind. en-us Mon, 07 Apr 2025 00:00:00 +0530 Wed, 07 May 2025 09:18:16 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770139 Karnataka HC held that SEBI's investigation order under Section 11-C was unsustainable due to lack of reasonable grounds. The court found that SEBI merely reiterated allegations from a withdrawn complaint without considering the entity's replies or compelling circumstances warranting suo motu investigation. The decision was flawed as internal notings remained unapproved by the competent authority and failed to demonstrate necessary reasons and belief for investigation. The court emphasized that state action must be reasonable and non-arbitrary, quashing the investigation order for want of proper application of mind. Case-Laws SEBI Mon, 07 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770139