New Delhi: The Supreme Court has dismissed a petition by Securities and Exchange Board of India (SEBI) by a 2:1 majority opinion, seeking review of its previous judgment, which directed the market regulator to share certain documents with Reliance Industries (RIL).
The market regulator has refused to entertain RIL's request to share the privileged documents on the grounds that under the SEBI (Settlement Proceedings) Regulations, the accused company has no right to seek information from it.
RIL had claimed that documents will exonerate it and its promoters from criminal prosecution initiated in a case filed by chartered accountant S. Gurumurthy, in 2002, 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.
RIL filed a contempt petition as SEBI has not shared three documents, the two legal opinions by former SC judge B.N. Srikrishna and former ICAI president YH Malegam's report which examined the irregularities.
In an order, a bench headed by former Chief Justice U.U. Lalit and comprising Justices J.K. Maheshwari and Hima Kohli said: "The Chief Justice of India by order dated October 19, 2022 directed that notice be issued in the review petition. Justice J.K. Maheshwari and Justice Hima Kohli by order dated October 19, 2022 dismissed the Review Petition. In view of the majority opinion, the Review Petition stands dismissed in terms of the signed orders. Pending applications, if any, shall stand disposed of."
On August 5, a bench led by then Chief Justice N.V. Ramana (retired), 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."
In their previous verdict, the top court had said that the market regulator should show fairness and furnish documents sought by RIL, and has a duty to act fairly, while conducting proceedings or initiating any action against the parties.
The company claimed that SEBI cannot continue to resist the production of these documents and it had also sent a notice to the 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.