Court holds that there is no public interest involved
CHENNAI: Holding there was no public interest involved in a public interest litigation petition seeking to restrain Surana Industries Limited from raising Rs.105 crore through Foreign Currency Convertible Bonds (FCCBs), the Madras High Court has dismissed the petition.
The First Bench, comprising Chief Justice A.P. Shah and Justice V. Ramasubramanian, dismissing the petition filed by K.R. Ramasamy, said the Reserve Bank of India had filed a counter-affidavit stating there was no violation of any FCCB guidelines.
“The RBI has categorically stated that the sixth respondent (Surana Industries) has not violated any of the provisions of the FCCB guidelines and there is no substance in any of the averments made in the writ petition.”
The Securities and Exchange Board of India filed a counter stating that it was in no way concerned with the raising of FCCBs and had been unnecessarily impleaded as a party to the proceedings.
The petitioner had prayed for a direction to the Centre, the RBI and the SEBI to cancel the permission granted to the sixth respondent to raise the FCCBs, on the ground that several irregularities had been committed by it.
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