Mumbai: The Bombay high court has dismissed a petition filed by Shraddha Binani, daughter of Brij Binani of erstwhile Binani Cements (BCL) and a non-executive director in the company, challenging summons issued to her last year by Serious Fraud Investigation Office (SFIO).
Ms Binani had approached the HC challenging the summons issued to her by the SFIO contending that she had been a non-executive director of BCL for only a period of two years between 2012 to 2014. She claimed that after the initiation of the Corporate Insolvency Resolution Process (CIRP), the company, its promoters, shareholders, directors and all persons had no connection with the affairs of BCL. Hence the summons issued to her did not serve any purpose whatsoever.
SFIO initiated investigation on orders of Ministry of Corporate Affairs
The SFIO argued that it had initiated investigation based on order of the Ministry of Corporate Affairs. The order stated that "the Resolution Professional had made a presentation on the avoidance transactions executed by the BCL including sales to potential related parties without adequate collection of receivables resulting in diversion of funds, loans, etc foregoing interest of Rs 382 crores."
SFIO had claimed that her examination was crucial as their investigation had revealed the transfer of huge funds since 2010 to her personal bank account from related BCL companies and certain other entities.
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