Court Limits Role in Share Acquisition Fraud Case, Urges SEBI and RBI to Investigate Allegations, Rejects Mandamus Writ.

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....Private commercial transactions involving acquisition of shares in a life insurance company were challenged on allegations of fraudulent acts and undue profits. The court held that where a field is regulated and the regulator has addressed or is investigating the transaction, the court should not interfere in writ jurisdiction and allow the regulator to perform its duties. Writ of Mandamus cannot be used for enforcement of private contracts. Examining commercial transactions for reasonableness under Article 226 should be avoided as it would subject every valuation, sale, purchase, merger, acquisition, or demerger to judicial review. If criminality is alleged, appropriate proceedings can be filed. The court found no ground to implead the SEB.........