No action on summons against Subhash Chandra for 3 weeks in fund diversion case: Sebi to HC

Mumbai: The Securities and Exchange Board of India (Sebi) on Wednesday told the Bombay High Court it would not take any further action on the summons issued by it to Essel Group Chairman Subhash Chandra in an alleged fund diversion case.

Chandra had filed a petition earlier this month challenging the summons and had sought for it to be quashed.

The businessman's counsel, Ravi Kadam, sought for the entire proceedings initiated by the Sebi to be quashed and argued that the capital market watchdog was going ahead with the probe in a "predetermined" manner.

A division bench of Justices Girish Kulkarni and Firdosh Pooniwalla on Wednesday permitted the Sebi to file its affidavit in reply to Chandra's petition.

The regulator's counsel, Mustafa Doctor, told the bench that for a period of three weeks from today (March 20), no further action under the summons shall be taken.

"We accept the statement," the bench said and posted the matter for further hearing on April 10.

In January, the stock market regulator had issued multiple summonses to Chandra.