HC discharges Gautam Adani, Rajesh Adani

Mumbai : The Bombay High Court on Monday discharged Adani Enterprises Ltd, group Chairman Gautam Adani and MD Rajesh Adani from a case of alleged violations of market regulations involving Rs 388 crore, saying no case of cheating or criminal conspiracy was made out.

The Serious Fraud Investigation Office (SFIO) in 2012 initiated the case against the Adani Enterprises Limited (AEL) and its promoters Gautam Adani and Rajesh Adani, and filed a chargesheet, accusing them of criminal conspiracy and cheating.

In 2019, the company and the two industrialists filed a petition in the HC, seeking to quash a sessions court order of the same year refusing to discharge them from the case.

The HC's single bench of Justice R N Laddha on Monday quashed the sessions court order and discharged the duo and the company from the case.

The court in its order said a careful evaluation of the submissions and records makes it "evident that the complaint fails to satisfy the essential ingredients of the offence of cheating". When the offence of cheating itself is not made out, then even the charge of criminal conspiracy becomes unsustainable, it added. "A fundamental requirement for an offence under section 420 of the IPC (cheating) is the presence of an element of deception, which leads to the victim suffering from loss while the accused gains wrongfully," the HC said.

However, in the present case, there is a conspicuous absence of any such allegations from an affected party, it said.

"Merely by asserting that the accused has made a wrong gain without demonstrating the corresponding wrongful loss or deception suffered by a specific victim does not suffice to attract the offence of cheating," the court said.