PIL in HC for CBI probe into debt waiver for ESL management transfer to Vedanta withdrawn
Aug 31, 2020
New Delhi [India], Aug 31 : A public interest litigation (PIL) filed in the Delhi High Court seeking a CBI probe into the alleged siphoning of public money by waiving due debts of about Rs 9,358 crores for transfer of ESL management to Vedanta was withdrawn on Monday.
The petition, filed by advocate Manohar Lal Sharma, was withdrawn after it was heard by a division bench of Chief Justice DN Patel and Justice Prateek Jalan today.
Notably, global resources major Vedanta had acquired management control of Electrosteel Steels Ltd (ESL) in June this year and named a new board to run the distressed steelmaker.
Sharma, in his plea, had sought a direction to the Central Bureau of Investigation (CBI) to lodge an FIR against State Bank of India and others, and to investigate the alleged offences for siphoning off of public money by a waiver of due debts about Rs 9,358 crores with interest for transfer of ESL management to Vedanta and to give up accrued income about Rs 2,800 crores without any court order and authority.
The plea sought the registration of an FIR under Section 409 (criminal breach of trust), 420 (cheating), and 120-B (criminal conspiracy) of the Indian Penal Code (IPC) read with relevant sections of the Prevention of Corruption Act 1988 and others in the matter.
It also sought directions for the CBI probe into the matter and file its report before this court in a time-bound manner to prosecute all accused persons for further direction for recovery and prosecution of the accused persons in accordance of law in the interest of justice.
The plea alleged the State Bank of India, due to corruption, is bent upon to waive off about Rs 5 lakh crores to various companies without a court order and law.
The SBI has already waived off Rs 9,358 crores due debts public money coupled with an accrued income of about Rs 2,900 crores, accrued during NCLT proceedings from 2016 till March 2018, in favour of Vedanta PLc and its subsidiary for short Vedanta, the plea alleged.
The petitioner also sought directions to not waive off any due debts from the debtors' companies unless having a law framed by the parliament within the Constitution of India otherwise, it's a serious violation of Art.21 and 14 of the constitution of India.
He also sought a direction to respondent State Bank of India, Vedanta Resources plc, Vedanta Ltd, Chairman of Vedanta Resources plc Anil Agarwal, Khaitan and Co and Electrosteel steels ltd to recover waived due debts amount Rs 9,358 crores with interest.
The plea sought to recover accrued amount about Rs 2,800 public money from Vedanta, what has been given to Vedanta without any National Company Law Tribunal (NCLT) order and be distributed among the original equity public Shareholders of the Pre transfer-ESL company.
It also sought directions to forfeit equity shares held by Vedanta in post-Esl acquired being hit by fraud and criminal conspiracy jointly played by respondents in the interest of justice.
