Anugrah Stock and Broking: MPID Court Slams EOW for Sluggish Investigation

Moneylife Digital Team 26 July 2024

While hearing the case against Anugrah Stock and Broking Pvt Ltd (ASBPL), the special Maharashtra Protection of Interest of Depositors (MPID) court slammed the economic offences wing (EOW) of Mumbai police for the delay and slow progress in the investigation. The court directed EOW to look into the roles of Edelweiss Custodial Services Ltd, Teji Mandi Analytics Pvt Ltd and its directors, National Stock Exchange (NSE), and chartered accountant (CA) Aayush Toshniwal.

In an order last week, special judge Aditee Uday Kadam says, "...this court is of the considered view that on the basis of documentary evidence produced on record prima facie involvement of all the proposed accused is established. Role of the proposed accused was even revealed through the say filed by the investigating officer (IO). Till now, some of them are arrayed as witnesses for the best reason known to the IO. This court is not at all convinced for the reason put-forth by the Maharashtra government for the delay and sluggish progress in investigation."

Kandivali-based businessman Ashutosh Shah had filed the petition before the special MPID court seeking further investigation against Edelweiss Custodial Services, Teji Mandi and its directors, NSE and CA Toshniwal.

The bench noted that Anugrah Stock and Broking, which has already been impleaded as a party to the proceeding, has not taken any separate stand to defend itself. It supported the application (of Mr Shah) with the contention that a thorough investigation is required to discover real culprits.

Mr Shah claims that Mr Toshniwal, his CA, persuaded him to invest a huge amount through Anugrah Stock & Broking. However, he contended that no positive steps were taken by the EOW to investigate offences against Edelweiss Custodial Services, Teji Mandi and its directors, NSE and CA Toshniwal. "Even as per the report filed by the IO, these accused are found to be beneficiaries of the transaction which were carried out during the course of the commission of the offence."

In this case, the special MPID court says there is vast material showing the involvement of the proposed accused as per amendment in the commission of the offence. "Out of them, some are statutory bodies under SEBI. In addition to it, apparent delay and slow progress in the investigation support the case of the applicant. But considering the nature of the offence and investigation thereof, which is quite complicated one and the scope of the same is very vast, this court by way of abandoned precautions, forbear to proceed with against the proposed accused under Section 190 of the Code of Criminal Procedure (CrPC)."

The court also directed to forward copies of its order to the commissioner and joint commissioner of Mumbai police to take necessary action.

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