Calcutta High Court stays SFIO investigation into alleged misuse of HNGIL Provident Fund Trust; directs trial court to decide on interim relief.
Calcutta HC Stays SFIO Probe in Provident Fund Trust Case
The Calcutta High Court stayed the investigation initiated by the Serious Fraud Investigation Office (SFIO) into allegations of fund misuse by the HNGIL Provident Fund Trust. The court did not examine the merits but kept all submissions open while directing the Trial Court to finally dispose of the interim injunction application.
The interim stay was granted to prevent potential prejudice during the pendency of civil proceedings relating to the trust’s governance. The High Court emphasized the need to avoid multiplicity of proceedings and protect stakeholders during judicial review.
Implications for Practitioners
This order highlights judicial caution in allowing SFIO investigations to proceed parallel to civil disputes involving trust management. Legal advisors should consider seeking interim stays where investigations may interfere with ongoing civil or internal governance matters.
