The Supreme Court has granted interim bail for a period of three months to an accused who has remained incarcerated for over eleven years in connection with multiple investor fraud cases, while simultaneously constituting a Special Committee to identify, verify and settle the claims of investors affected by the alleged fraudulent activities of a group of companies. Senior Advocate Vinay K. Garg, Sr. Adv. and AoR Abhikalp Pratap Singh appeared for the Petitioner.
A Bench of Justice Vikram Nath and Justice Sandeep Mehta observed that the disputes substantially pertained to investor claims that were capable of being monetarily quantified and settled. Taking note of the prolonged incarceration and the possibility of resolving claims through liquidation of assets, the Court noted that a genuine settlement effort could not only compensate investors but also potentially result in the closure of multiple criminal proceedings through amicable resolution.
To facilitate the process, the Court directed the formation of a Special Committee headed by Justice Manindra Mohan Shrivastava, former Chief Justice of the Rajasthan and Madras High Courts. The Committee has been tasked with identifying and settling claims and resolving disputes relating to the affairs of the company and its associate entities that allegedly engaged in fraudulent financial activities resulting in the registration of multiple FIRs across jurisdictions.
The Court directed the accused to proactively cooperate with the Committee, including by facilitating the sale of assets and taking necessary steps to generate funds for settling the claims of investors and complainants.
Granting interim bail, the Bench ordered release in connection with all FIRs registered across jurisdictions as well as in relation to judgments of conviction, subject to furnishing two surety bonds of ₹10 lakh each and a personal bond of an equivalent amount.
The Court further directed that comprehensive details regarding pending criminal proceedings, investor liabilities, movable and immovable properties, bank accounts, fixed deposits, company records and other relevant documents be furnished before the Special Committee to enable verification and settlement of claims.
The Committee has been empowered to hold proceedings at various locations, including New Delhi, Jaipur, Bhopal, Rewa and Noida, depending upon the convenience of stakeholders and the location of investors and assets. States where FIRs have been registered or properties are situated have been directed to appoint nodal officers to assist the Committee.
The Bench directed that the expenses of the Committee would be borne by the accused. It also approved an interim honorarium of ₹50 lakh for the Chairperson of the Committee, with half payable upfront and the remaining amount upon submission of the first report. The Committee has additionally been permitted to seek assistance from State Legal Services Authorities wherever necessary.
Justice Manindra Mohan Shrivastava has been directed to submit an interim status report in a sealed cover by September 15, 2026, detailing progress in identification of investors, verification of liabilities and valuation or liquidation of properties. The matter has been listed for further consideration on September 21, 2026.
The Court also allowed an application seeking impleadment of the Securities and Exchange Board of India (SEBI) and directed the regulator to extend full cooperation to the Committee by providing all relevant records and information necessary for effective discharge of its mandate.
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