Saturday, January 31, 2009

Sebi gets top law man to net Raju


By S A Ishaqui
Hyderabad,Jan. 29: The Centre deputed the Solicitor-General, Mr Goolam E. Vahanvati, to fight Sebi’s case for permission to question the Satyam scamster, Mr B. Ramalinga Raju.
The surprise presence of India’s top law officer in the court at this early stage, when the Securities and Exchange Board of India is appealing a lower court decision, showed the Centre’s keenness to get to the bottom of the fraud at the IT company, sources said.
According to sources in the Union ministry of corporate affairs, the Prime Minister, Dr Manmohan Singh, spoke with legal luminaries and top officials overseeing the Satyam case just before his hospitalisation for cardiac surgery.
Mr Vahanvati took serious exception to the lower court’s order disallowing Sebi, a statutory body, from questioning Mr Raju. The High Court decided to begin its hearing on Friday on the Sebi petition.
The High Court registry did not number the petition on Thursday as Sebi had filed a writ instead of a revision petition. The petition came before Justice B. Seshasayana Reddy with an office objection to numbering it.
The judge asked that when there is a provision under Section 397 of the Criminal Procedure Code to appeal a lower court decision, why did Sebi choose a writ under Article 226 of Constitution.
The judge asked the Solicitor-General why Sebi was asking the court to invoke its extraordinary jurisdiction under Article 226 to review the lower court’s order. Mr Vahanvati said for choosing an alternative method there are three exceptions: Violation of fundamental rights, natural justice and jurisdiction.
Citing Supreme Court directions in a previous case, he said if these exceptions were not there he could choose an alternative. Mr Vahanvati contended that Article 226 enables an aggrieved party to challenge the lower court order by invoking the extraordinary jurisdiction. The judge directed the registry to number the writ and asked the solicitor-general to argue on the maintainability of the petition.

No comments: