The court has vacated the interim stay granted against Asnani's trial and the Additional Chief Metropolitan Magistrate, 37th court, Esplanade Court, Mumbai has been asked to dispose off the matter as early as possible.

Asnani had earlier applied for his discharge in the trial court too. He had contended there was no direct evidence to prosecute him in the case filed by the CID against his friend Mukesh Malkani. He also argued that since the main offence was committed in a foreign country (Chile), the present case cannot be filed without prior sanction of the Central government as contemplated under Section 188 of the Criminal Procedure Code.

The initial complaint was filed with CID by Ramchan Shatranganilal, who had employed his nephewMalkani as a manager in the Chile-based business firm. Malkani is said to have misappropriated funds to the extent of one million US dollars in 1984. When Malkani was arrested, he claimed that a sum of Rs 3 lakh was transferred by him in the name of Asnani. When CID confronted Asnani, he admitted to having received the amount. Asnani withdrew the amount from his bank and submitted it to the trial court. After due formalities like recording of statement, he applied for refund of cash. But soon after he executed the indemnity bond for withdrawal of the amount, he was arrested by police.

According to the assistant public prosecutor M P Galeria, the main conspiracy was hatched on the telephone by Asnani and Malkani. While the actual offence took place in Chile, it was later abetted in India. Moreover, even if prior sanction of the Central government is needed to prosecute Asnani, the trial has not yet begun and the state government has time enough for this procedure. Petitioner's counsel Prakash Shetty saidexcept for Asnani's own admissions, there was no material evidence against him. Moreover, police had not arrested him five years after his involvement came to light.

According to Justice S S Parkar, the prosecution should be allowed to probe further into the nature of Asnani's involvement. The court has observed that the main accused seems to have transferred huge amounts in India in various bank accounts, including Asnani's account.