Delhi HC quashed an FIR against Ashish Bhalla, affirming that an SFIO investigation precludes parallel probes. This ruling clarifies jurisdictional matters in corporate investigations.
Delhi HC on Parallel Investigations and Jurisdiction
The Delhi High Court recently quashed an FIR filed by the Economic Offences Wing (EOW) against Ashish Bhalla, underscoring the precedence of investigations led by the Serious Fraud Investigation Office (SFIO) under Section 212 of the Companies Act.
The court ruled that once the SFIO has been assigned an investigation regarding allegations, other parallel proceedings on the same issue are impermissible. This distinction ensures a singular jurisdictional authority over investigations to avoid conflicting outcomes and overlaps in legal proceedings.
"A single authority must investigate allegations to maintain clarity in proceedings," the court emphasized.The decision serves to streamline corporate investigations under the Companies Act.
Legal professionals should note this ruling as a critical clarification of jurisdiction in corporate regulatory matters, emphasizing the need for agencies to coordinate efforts instead of duplicating their investigations.
Citations
- Delhi HC Decision (2026) Delhi HC 201
