SC refuses to quash FIR against Kotak Mahindra & its directors

New Delhi: The Supreme Court has refused to quash an FIR against Kotak Mahindra Bank and its nine top executives in a case relating to alleged criminal conspiracy to cheat a liqour manufacturer on the pretext of settling debts.

However, the apex court also said "no coercive measures" will be taken against the executives till eight weeks' time during which they can seek bail from the concerned court.

The FIR was lodged in Raisen district of Madhya Pradesh against the Kotak Mahindra Bank and its directors-- Anand Mahindra, Pradeep Kotak, Cyril Shroff, Shivaji Dam and Asim Ghosh-- and C Jayaram and Dipak Brijmohandas Gupta, Executive Directors, Shankar Nath Acharya, part-time Chairman and Uday Suresh Kotak, Executive Vice-President and MD.

A bench of Justice B S Chauhan and J S Khehar rejected the petition filed by the bank and its top bosses challenging a Madhya Pradesh High Court judgement which had upheld the order of a trial court directing lodging of the FIR.

"We are not inclined to entertain the special leave petitions. The petitions are dismissed accordingly," the bench said in its order passed on February 6.

"However, the petitioners are protected for a period of eight weeks and thus no coercive measures be taken against any of them. They may apply for bail. They are also at liberty to agitate all factual and legal issues before the court concerned at the time of framing of the charges," it said.

"The court below shall consider the case on merit without being influenced by any observations made by the High Court. It is also made clear that we have also not expressed any opinion on merits of the cases," it added.