The Hindu : New Delhi News : ‘Proceed with complaint against Margadarsi’

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‘Proceed with complaint against Margadarsi’

J. Venkatesan

Supreme Court tells Additional Chief Metropolitan Magistrate

NEW DELHI: The Supreme Court on Friday made it clear that the Additional Chief Metropolitan Magistrate, Hyderabad, can proceed in accordance with law on the complaint filed against Margadarsi Financiers, represented by Ramoji Rao for violation of the provisions of the Reserve Bank of India Act.

A Bench of Chief Justice K.G. Balakrishnan and Justice R.V. Raveendran passed this order while disposing of a special leave petition filed by Andhra Pradesh government against an order of the Andhra Pradesh High Court observing that the proceedings to be taken by the Magistrate would be subject to the outcome of the petitions pending in the High Court and Supreme Court.

No bar

In a brief order, the Bench clarified that the pending proceedings in the High Court or in the Supreme Court were in no way any bar for the prosecution of the criminal proceedings.

The Bench made it clear that the Magistrate could proceed with the complaint as there was no order of stay of the proceedings by the High Court.

The State in its SLP said that the authorised officer had filed a complaint before the Magistrate against Margadarsi Financiers and Mr. Ramoji Rao for collecting deposits in violation of the provisions of the RBI Act.

The Magistrate rejected the complaint on the ground that connected matters were pending in the High Court and the Supreme Court.

He also referred to the observations of the High Court that the proceedings would be subject to the outcome of these petitions.

Senior counsel T.R. Andhyarujina, appearing for the AP government, submitted that the High Court order should be corrected as the Magistrate had rejected the complaint on the basis of the High Court observations.

No stay order

Senior counsel L. Nageswara Rao, who appeared for the Margadarsi Financiers, said that there was no stay order passed by the High Court and that if the Magistrate had committed any wrong it had to be corrected by approaching the High Court.

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