Supreme Court sets aside release of ₹15.90 lakh in alleged stock fraud involving NDA Securities.
CASE SUMMARY – In NDA Securities Ltd. vs. State (NCT of Delhi) & Anr., the Supreme Court set aside the Delhi High Court’s order permitting release of ₹15.90 lakhs held by BSE in a securities fraud case. The case stems from a 2015 FIR where shares were fraudulently sold via impersonation. The prime accused is absconding and the investigation is ongoing. The Court found the High Court exceeded its jurisdiction under Section 482 CrPC by making premature conclusions on respondent no. 2’s role. It held the funds should remain with BSE until trial concludes to preserve integrity of the judicial process.
SC SETS ASIDE DELHI HC ORDER IN NDA SECURITIES FRAUD CASE
| ASPECTS | DETAILS |
| Case Title | NDA Securities Ltd. vs. State (NCT of Delhi) & Anr. |
| Introduction | Appeal filed against Delhi High Court’s order allowing release of ₹15.90 lakhs held by BSE in a case involving alleged securities fraud. |
| Factual Background | FIR was registered in 2015 after impersonation and fraud in purchasing 1 lakh shares. Investigation revealed fraud involving agent Ashish Agarwal and prime accused Amit Jain. Respondent No. 2 is the main beneficiary. |
| Legal Issues | Whether the High Court could direct release of withheld funds under Section 482 CrPC when the investigation was incomplete and the role of respondent no. 2 was under scrutiny. |
| Applicable Law |
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| Analysis | Supreme Court held that the High Court overstepped its jurisdiction by prematurely releasing funds while investigation was still ongoing and the main accused absconding. |
| Conclusion | High Court’s order dated 25.02.2025 set aside. Funds to remain with BSE pending trial. Trial Court directed to expedite proceedings. |
| Current Scenario | Supreme Court reinstates Magistrate and Revisional Court’s decision. ₹15.90 lakhs to stay with BSE. Investigation pending; Amit Jain absconding; respondent’s role still under scrutiny. |
Releasing sale value of shares during an incomplete investigation could vitiate the entire trial.
SC SETS ASIDE DELHI HC ORDER IN NDA SECURITIES FRAUD CASE
SOURCE – SUPREME COURT OF INDIA
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