In Brief
Centre for Public Interest Litigation challenged the conduct of IFCI's CEO and MD and sought removal, investigation into financial irregularities, and conversion of government debentures into equity. The Supreme Court held that while the CEO's removal had become infructuous due to his resignation, allegations of serious financial mismanagement—including loss-making investments and inadequate due diligence—required independent regulatory scrutiny by multiple agencies (CBI, RBI, SEBI), not reliance on IFCI's self-assessment. The Court emphasised that public interest demands independent investigation and that a financial institution cannot be the final judge of its own legal compliance. The petition was disposed with directions for coordinated regulatory action within four months.
The lawyer headnote and full judgment text are available to registered users.