Chairman and Managing Director of SpiceJet (SG, Delhi Int’l), Ajay Singh, has been temporarily protected from arrest in an alleged fraud case related to a stock purchase in which, according to a police investigation, the money was transferred but the shares were not.
‘No enforcement action until the next court date,’ announced Delhi High Court Judge Anoop Kumar Mendiratta, who entered Singh’s ‘early bail’ application – allowing him to remain free before an arrest is made – for further consideration on May 24, the Press Trust of India news agency reported.
The court ordered Singh to cooperate with the investigation and keep the disputed actions frozen until that date.
The lower district court had denied Singh’s bail request in late March, pointing to the circumstances of the case and the seriousness of the offence.
The case concerns a transaction in which a member of the public acquired 25 million SpiceJet shares for INR 2.5 million rupees ($33,000) but claimed that 10 million of them had not been transferred. This prompted him to file a police complaint against Singh himself, who now faces an arrest warrant for allegedly refusing to cooperate with the police investigation.
Singh’s lawyer told the court that the chairman of SpiceJet had returned the sum of INR 1 million ($13,200) in question and said his client was ready to ‘secure and set aside separately’ the number of actions under investigation. Singh argued that, overall, the case was an abuse of the criminal justice system.