CBI & ED Are Already Investigating & Registering FIRs: Delhi HC On Plea Alleging Financial Institutions Extending Loans To Select Few Companies

While dealing with a batch of petitions alleging that financial institutions are extending loans to a select few companies, the High Court has observed that investigating agencies- CBI and the ED are already investigating into matters and are registering FIRs.

The bench of Chief Justice Satish Chandra Sharma and Justice Subramonium Prasad disposed of the petition while observing thus “…investigating agencies, namely, CBI and the ED are looking into the cases and have filed Status Reports confirming that they are already investigating into certain matters and are registering FIRs, this Court is not inclined to proceed further in the instant writ petitions.”

The petitioner had sought legal action against financial institutions and the companies alleging that financial institutions are extending loans to a select few companies which has resulted in huge amounts being siphoned off from the financial institutions and the nationalized banks.

Advocates M S Khan, Neha Khan and M. Arshyan appeared for the petitioner whereas SPP Anupam S. Sharma appeared for CBI and CGSC Ravi Prakash appeared for Union of India.

The Court observed that as per the status report filed by CBI, FIRs have been registered against companies and also the bank officials who have given undue favours to companies and investigations are being conducted by the CBI.

The Court also noted that High Courts while exercising its jurisdiction under Article 226 of the Constitution of India cannot mechanically direct CBI or any other investigating agency to inquire into the transactions only on a possibility that some crime would have occurred.

“The High Court cannot merely proceed on the basis of ‘ifs’ and ‘buts’ and thinks it appropriate that inquiries should be made by CBI.”, the Court noted.

The Court observed that it cannot be asked to conduct fishing and roving inquiry directing the investigating agencies to look into every transaction by the companies and the financial institutions.

“If the Petitioner has got any concrete material or information regarding commission of a crime, it is always open for the Petitioner to approach the Police/investigating agencies to look into the matter and to investigate into the allegations of the offence committed by the private Respondents and the bank officials.”, the Court noted.

The Court further added that FIR will be registered in case of cognizable offence. The Court observed that the complainant can file an application under Section 156(3) CrPc before the Magistrate if police doesn’t register FIR.

Accordingly, the petition was disposed of.

Cause Title- Ankur Gupta v. The Union of India & Ors.

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