Authority: Supreme Court of India
Order Date: 12 October 2026
Case Overview
- Petitioners: Pushpendra Singh Baghel and anr; brothers Dhirendra Singh Baghel, Mrigendra Singh Baghel, Ranvijay Singh Baghel filed interim applications (I.A. Nos. 263918/2026, 264175/2026, 264180/2026) seeking impleadment, stating they were directors of Sai Prakash Properties Development Limited and accused in FIRs.
- Respondents: State of Madhya Pradesh and others.
- Additional I.A.s (263924/2026, 263927/2026, 264178/2026) sought protection against coercive action related to the FIRs.
- The matter involves multiple criminal cases and settlement of investors' claims against Sai Prakash Assurance Services Private Limited and its associate companies.
- A Special Committee headed by Justice Manindra Mohan Shrivastava was constituted on 29 May 2026 to settle investors' claims.
- On 21 September 2026 the Court noted that a sale deed had been executed and the entire sale consideration deposited in the escrow account maintained by the Special Committee, but no report had been received, prompting a request for an updated status report.
Observations & Directions
- The Court ordered notice to be issued to respondents on all the interim applications.
- As an interim measure, no coercive steps shall be taken against the applicants in I.A. Nos. 263924/2026, 263927/2026 and 264178/2026 pending further orders.
- The interim protection for the petitioners shall continue until 2 December 2026.
- The Special Committee’s interim status report was placed on record, detailing verification and settlement steps, and a compilation of its orders was reviewed.
- The Committee requested appointment of Nodal Officers by the Chief Secretaries of Uttarakhand, Madhya Pradesh and Maharashtra, transfer of funds in 52 frozen bank accounts, details of investors awaiting refunds, and de‑attachment of properties of the petitioner and related companies.
- SEBI counsel Amarjit Singh Bedi informed the Court that SEBI has transferred ₹37,25,000 to the escrow account of the Special Committee.
- SEBI also reported 46 frozen bank accounts containing an aggregate of ₹1,01,00,000, with possible liens by CBI or local police; SEBI seeks clarification on the status of these liens.
- The Court directed SEBI to communicate the complete status of the frozen accounts, amounts, and any restrictions to the Special Committee for further action.
- The Registry is to furnish copies of the interim status report and this order to the learned counsel and standing counsel of the concerned States.
- The Court directed the Chief Secretaries of Uttarakhand, Madhya Pradesh and Maharashtra to appoint Nodal Officers within two weeks, warning of possible coercive orders for non‑compliance.
Final Outcome
- Notice issued on all applications; interim protection upheld until 2 December 2026; appointment of Nodal Officers mandated within two weeks; SEBI instructed to provide full details of frozen accounts to the Special Committee; the matter listed for hearing on 30 November 2026.
Topics: Investor Protection, Court Orders