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Securities scam: SC admits Hiten Dalal's appeal against StanChart

The Supreme Court today admitted an appeal by stock broker Hiten Dalal against a decree passed by the special judge in the security scam case holding that the shares of the appellants were validly placed with the Standard Chartered Bank to cover up losses to the tune of Rs 2.80 billion.

The court also directed status quo in regard to any transaction in shares placed with the bank thereby prohibiting sale of the shares of Dalal in view of an order of the special court permitting the bank to sell them after a specified period.

The court also issued a notice on an application filed along with the appellant seeking stay of the impugned judgement of the special court.

The appeal was admitted by a division bench comprising Justice B N Kirpal and Justice S Rajendra Babu.

The special court had passed the decree dated December 24, 1998 on a suit filed by the bank alleging that it had suffered losses of Rs 2.80 billion in respect of transactions in securities through the appellant, hence the bank sought a declaration that the appellant should make good the losses.

The special court had also awarded costs of Rs 184,000 to be paid to the custodian appointed in the aftermath of the security scam of 1992 and Rs 3 million to the plantiff bank.

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