IFCI row: SC orders govt to ensure inquiry

The Supreme Court has ordered the Union government to ensure proper inquiry into the financial irregularities in the Industrial Financial Corporation of India (IFCI). A bench of Chief Justice T S Thakur and Justice D Y Chandrachud said the scrutiny shall be initiated within a month from the receipt of a copy of this judgement and completed in four months thereafter.

“There is a vital element of public interest in ensuring that a full, fair and objective scrutiny is carried out by an independent regulator with a view to ensure a degree of accountability. If it is found that the conduct of any of the officers or employees of IFCI led to the sustain of a loss, such conduct must be subjected to scrutiny and action in accordance with the law,” the bench said.

The court disposed of a petition filed by NGO Centre for Public Interest Litigation seeking an independent probe into various financial irregularities which have come to light in the recent past in IFCI, and removal of its chief Atul Kumar Rai. The court noted that Rai, a 1985 Indian Economic Services officer, has already been removed from the post of CEO and MD of IFCI. The relief sought in the PIL had been rendered infructuous.

The petition argued by advocate Prashant Bhushan had charged that there have been, in the recent past, serious charges of administrative and financial irregularities in IFCI like purchase of 5% stake in the MCX-SX by IFCI management on a much higher price of Rs 35 per share, whereas Union Bank of India and Bank of India acquired shares of the same company at Rs 10 per share.