AJOY ACHARYA vs STATE BUREAU OF INV.AGAINST ECO.OFFENCE

The Supreme Court addressed the legality of the Board of Directors' resolution dated 19.4.1995 of the Madhya Pradesh State Industrial Development Corporation, which authorized the extension of inter corporate deposits despite prior prohibitions established in a Cabinet Review Meeting on 28.1.1994 and a subsequent Board resolution on 31.1.1994. The Court held that the actions of the Board were in violation of Section 292 of the Companies Act, 1965, and constituted criminal misconduct under Sections 409, 406, 467, 468, and 120B IPC, as well as Section 13(1)(d) of the Prevention of Corruption Act, 1988. Consequently, the Court upheld the validity of the FIR registered against the accused, affirming the prosecution's stance on the matter.