In Brief
The Supreme Court addressed a public interest petition seeking removal of IFCI's Chief Executive Officer, investigation into financial irregularities, and enforcement of the Government's conversion rights over Optional Convertible Debentures. The petitioner alleged administrative and financial misdemeanours including inflated share purchases, loans to willful defaulters, and improper financial dealings. The Court held that public interest requires independent regulatory scrutiny by competing agencies (not by the entity itself) to ensure accountability. The Court directed the Union Ministry of Finance and Corporate Affairs to ensure independent scrutiny by the Serious Frauds Investigation Office, RBI, and SEBI within specified timeframes, and that the Union Government take necessary action upon receipt of these reports. The petition was disposed of without costs."
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