The court also took to task officers of the Economic Offences Wing (EOW) for “shutting the case abruptly” despite recommendations by inquiry officials to register an FIR under various sections of the IPC.

In his complaint, Dr A M Motiwala, a south Delhi resident, said he opened two trading accounts in the company on behalf of his wife and daughter, but “some shares were traded without his knowledge”.

The complainant told court that company officials had “admitted to lapses in communication with him”. Motiwala then registered a complaint with the EOW as well as the Securities Exchange Board of India (SEBI). He approached court last month after the EOW did not act. EOW officials told court that the case was inquired into but the case seemed to be of “civil nature” and only SEBI could act on it.

However, the court, on going through the inquiry report, noted that officials conducting the inquiry had, on January 3, 2007, recommended filing an FIR under Sections 409, 420, 46, 468, 477 A, 120 B of IPC.

Taking the EOW to task, Metropolitan Magistrate Sudesh Kumar, said, “The court fails to understand reasons for the abrupt closure of inquiry, thereby, blocking further inquiry and probe....”