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SC issues contempt notice to SEBI on RIL plea on non-compliance of court order

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 The Supreme Court has issued a contempt notice to the Securities and Exchange Board of India (SEBI) on Reliance Industries (RIL) plea alleging non-compliance of the court’s August 5 order, which directed the market regulator to provide access to certain documents to the company.

A bench comprising Justices M.R. Shah and M.M. Sundresh said: “Issue notice to the respondent, making it returnable on December 2, 2022. Abhishek Singh, counsel accepts service of notice on behalf of the respondent.”

Senior advocate Harish N. Salve, appearing on behalf of RIL, vehemently submitted that despite the August 5 order passed by the apex court by which the respondent (SEBI) was directed to furnish a copy of the documents, the same has not been furnished till date.

Senior advocate and former Attorney General of India K.K. Venugopal, representing SEBI, submitted that the review petition preferred by the respondent is pending before this court and, therefore, no further order be passed in the present proceedings.

The bench, in its order, noted: “We have gone through the subsequent order passed by this court dated October 12, 2022 in review petition. The pendency of an appeal and/or writ petition along with stay cannot be equated with pendency of the review petition.

I”There is a final decision by this court in an appeal. Merely because the stay application is pending in review petition cannot be a ground to grant stay by the respondent on its own and not to comply with the directions issued by this court.”

The bench said it is required to be noted that the State of J&K Vs. Mohd. Yaqoob Khan and others was a case where against the ex-parte order passed by the single judge, pending writ petition, the contempt proceedings were initiated.

“Therefore, this court observed that when the stay application is yet to be heard and decided and disposed of, the contempt proceedings cannot be initiated. Under the circumstances, the said decision(s) cannot be of any assistance to the respondent,” said the apex court.

The bench has scheduled the matter for further hearing on December 2.

The company had sought three documents from SEBI that it had claimed would exonerate it and its promoters from criminal prosecution initiated in a case related to the alleged irregularities in acquisition of its own shares between 1994 and 2000.

On August 5, a bench led by then Chief Justice N.V. Ramana, had said: “The approach of SEBI, in failing to disclose the documents, also raises concerns of transparency and fair trial. Opaqueness only propagates prejudice and partiality. Opaqueness is antithetical to transparency.”

The top court had said the market regulator should show fairness and furnish documents sought by RIL, and SEBI has a duty to act fairly, while conducting proceedings or initiating any action against the parties.

RIL filed a contempt petition as SEBI has not shared three documents — the two legal opinions by former Supreme Court judge B.N. Srikrishna and former ICAI President Y.H. Malegam’s report which examined the irregularities.

The company claimed that SEBI cannot continue to resist the production of these documents and it had also sent a notice to the market regulator saying if documents were not received by August 18, then it will establish that SEBI does not want to comply with the apex court’s judgment.

In 2002, Chartered Accountant S. Gurumurthy filed a complaint with SEBI alleging irregularities by RIL, its associate companies and their directors/promoters, including Mukesh Ambani and his wife, Nita; Anil Ambani and his wife, Tina; and 98 others.

The complaint cited the issue of two preferential placement of non-convertible debentures in 1994.

SEBI had alleged that RIL along with Reliance Petroleum had circuitously funded the acquisition of its own shares in violation of the Sections 77 and 77A of the Companies Act, 1956.

Crime

ISI shifts focus from Dawood operations to protecting him near Karachi port

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New Delhi, Sep 25: Pakistan’s Inter-Services Intelligence (ISI) has reportedly changed its approach towards fugitive underworld figure Dawood Ibrahim, with greater emphasis now being placed on keeping him secure and moving him to a location near Karachi port.

Intelligence officials said the move is aimed at protecting the narcotics network linked to him while reducing the risk of international scrutiny falling on Islamabad.

He is considered a key figure in the syndicate that has been operating a narcotics smuggling network in India for several years.

For the Pakistani spy agency, which has supported Dawood Ibrahim over the years, the current situation is proving increasingly difficult. The agency needs funds to sustain terror groups such as the Lashkar-e-Taiba (LeT) and Jaish-e-Mohammed (JeM).

Intelligence inputs suggest that this has increased the pressure on the network to expand the narcotics trade substantially.

An official said the ISI would have wanted Dawood Ibrahim to use his network to significantly expand narcotics smuggling operations. “However, the focus now is more on creating escape routes, taking care of his health and also ensuring his safety,” the official said.

While Dawood is reportedly suffering from several health problems, he is alive and continues to remain in Karachi. Following Operation Sindoor in May last year, the ISI is believed to have stepped up his security and moved him between different locations to avoid detection.

“He is currently living near a port in Karachi, and this location was chosen so that he could make a quick escape in case of an Indian operation that would look to target him,” the official added.

An Intelligence Bureau official said that the reason he is being kept at a location from where he could make a quick escape is that if he is killed in an operation, then it would become amply clear that Pakistan has been housing him.

Islamabad has over the years vehemently denied his presence in Pakistan.

While Operation Sindoor inflicted significant damage on Pakistan’s terror infrastructure, it also altered the operating environment for the Dawood syndicate. Dawood, who had largely remained in the security of his Karachi residence, was forced to change his movements and operating pattern following the operation.

“Today when it comes to Dawood, the ISI is focusing more on ensuring his protection rather than using him for operations,” the IB official added.

The Narendra Modi government’s intensified crackdown on drugs has also disrupted the ISI’s plans to a considerable extent. The arrest of Dawood’s close aide, Salim Dola, has unsettled the syndicate’s international operations and disrupted established supply chains. In India, enforcement agencies are continuing their relentless pursuit of narcotics networks and cartels.

Another official said that in such a situation, Dawood becomes extremely handy for the ISI. There are the likes of Anees Ibrahim, Chhota Shakeel and Haji Salim to run the show. But Dawood is a cult figure for the syndicate, and with him not to be seen, many of the operatives have developed low morale, the official said.

The ISI would look for ways to ramp up narcotics smuggling in India. There is a major push that is being made through Punjab. However, the ISI would want the trade to thrive in all parts of the country, as raising funds from only Punjab operations is not sufficient to nurture the various terror groups in Pakistan, officials say.

In addition to Dawood’s poor health and security issues, there is also a succession battle within the syndicate. Shakeel feels he is far more useful and has contributed much more than the rest for the syndicate.

However, the family members are rooting for Dawood’s brother Anees Ibrahim to take charge, officials also point out.

Another official said that the ISI has multiple problems when it comes to the Dawood syndicate.

It cannot afford so many problems, especially with this syndicate at a time when it wants to raise funds in a big way through narcotics smuggling.

On the other hand, concealing his location and not letting the world know that he is in Pakistan is also important for the ISI. The country is also under close scrutiny by the Financial Action Task Force (FATF), and hence it becomes important to secure and cover Dawood Ibrahim, who is a key figure in terror funding, counterfeiting, and money laundering.

A weakened D-Company is good news for the Indian security agencies. Such issues would help the investigating agencies crack cases better and further weaken the Dawood network within India.

If the agencies manage to do this, a considerable amount of the narcotics smuggling problem in the country would be solved, an official said.

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Crime

Greater Noida bus fire: Passengers warned of burning smell, driver ignored them, says FIR

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Greater Noida, Sep 24: Passengers travelling on the double-decker bus that caught fire on the Yamuna Expressway in Uttar Pradesh’s Greater Noida had reportedly noticed a burning smell minutes before the blaze erupted; however, the driver and conductor allegedly continued smoking cigarettes inside the vehicle, according to the first information report (FIR).

Nine people, including a woman, were charred to death and several were seriously injured after a massive fire broke out in the bus, officials said.

The FIR stated that passengers had earlier objected to the driver and conductor smoking inside the bus. However, the two allegedly laughed off their objections and threatened the passengers, asking them to remain quiet and not raise the issue further.

According to the FIR, a strong burning odour subsequently began spreading through the moving bus.

The passengers noticed the smell and informed the driver about it, but he and the conductor allegedly dismissed their concerns, saying that such a smell was common inside the bus and that they often experienced it.

Despite repeated requests from the passengers to check the source of the smell, the driver allegedly did not carry out any inspection of the vehicle. Instead, he and the conductor continued smoking cigarettes while the bus was travelling on the expressway, the FIR said.

A few minutes later, flames were reportedly seen emerging from the front portion of the bus, causing panic among the passengers travelling inside the vehicle.

As the fire began spreading and passengers started screaming for help, the driver allegedly refused to stop the bus.

According to the FIR, the driver told the passengers, “I don’t care if you die, I won’t stop the bus.”

The incident involved a Bihar-registered sleeper tourist bus that was travelling from Delhi to Mahoba in Uttar Pradesh. The vehicle was carrying more than 35 people when the fire broke out on the Yamuna Expressway in Greater Noida.

The blaze rapidly engulfed the bus, while thick and dense smoke filled the vehicle, making it extremely difficult for the passengers to find a way out.

Upon receiving the information, senior police officials, accompanied by the local police force, a rescue tender, and a fire tender stationed at the Jewar Toll Plaza, responded, according to the officials. Four additional fire tenders and a fire service unit immediately rushed to the scene and completely extinguished the fire.

Preliminary investigations suggest that the fire originated from a spark or blast in the bus’s air conditioning system, which ignited the engine’s lubricating oil and caused the fire to spread rapidly.

The driver and conductor were taken into custody, and a case was registered under relevant sections, officials said.

“A case has been registered under relevant sections regarding the incident, and both the driver and the conductor have been taken into custody. Further necessary legal proceedings are underway,” officials said.

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National News

Three burnt alive, two critical as vehicle hits pole in Assam Nagaon

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Guwahati, Sep 24: Three people were burnt to death, and two others suffered critical injuries after the vehicle they were travelling in caught fire following a collision with a streetlight pole in Assam’s Nagaon district, police said on Thursday.

The accident occurred at Kenapatty near Puranigudam locality when the vehicle bearing registration number AR 01 W 5107 was travelling towards Guwahati from Arunachal Pradesh.

According to preliminary information, the driver allegedly lost control of the vehicle and crashed into a streetlight pole installed in the middle of the road.

The impact was followed by a fire that quickly engulfed the vehicle. Three occupants were trapped inside and could not escape the burning vehicle. They died at the spot after sustaining severe burn injuries.

Two others, identified as Vikas Kumar and Sonu Kumar, were seriously injured in the accident. They were initially rushed for medical treatment before being shifted to Guwahati, where their condition was reported to be critical.

Officials said the occupants were reportedly from Bihar and were travelling towards Guwahati when the accident took place.

Preliminary information suggested that the three deceased persons had boarded the vehicle midway through the journey.

Officials were working to establish their identities and ascertain the exact circumstances in which they had joined the journey.

Police said the vehicle was owned by Vikas Kumar, while Sonu Kumar was reportedly driving at the time of the accident.

The crash triggered panic in the area, with local residents and emergency personnel rushing to the spot after the vehicle caught fire.

Police and other authorities have begun an investigation to determine the precise sequence of events leading to the accident. Investigators are also examining whether speeding, loss of control, road conditions or any other factor contributed to the crash.

The bodies of the deceased were recovered from the vehicle, and further legal procedures are being carried out. Officials said more details, including the identities of the three deceased persons and the exact cause of the fire, would be known as the investigation progresses.

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