Ajoy Acharya vs State Bureau Of Inv.Against ...

The Supreme Court examined the legality of the Board of Directors' resolution dated 19.4.1995 of the Madhya Pradesh State Industrial Development Corporation (MPSIDC), which authorized short-term loans despite prior prohibitions from a Cabinet Review Meeting and an earlier Board resolution. The Court held that the actions of the Board were in violation of Section 292 of the Companies Act, 1965, and that the accused functionaries acted with knowledge of the prior decisions, thereby establishing culpability under Sections 409, 406, 467, 468, and 120B IPC and Section 13(1)(d) of the Prevention of Corruption Act, 1988. The judgment affirmed the validity of the FIR against the accused for their involvement in the alleged financial misconduct.