Supreme Court Slams NGO’s Counsel for Placing Fake MCA Letter on Record, Dismisses Smartworks IPO Appeal
The Supreme Court dismissed Infrastructure Watchdog’s appeal against SEBI in the Smartworks IPO case, warning the NGO and its counsel for placing a fake MCA letter on record.
In a recent ruling, the Supreme Court dismissed an appeal filed by New Delhi–based NGO Infrastructure Watchdog against the Securities and Exchange Board of India (SEBI) in connection with the Rs. 560-crore initial public offering (IPO) of Smartworks Coworking Spaces Limited, and cautioned the NGO against placing false documents on record.
The case arose from a July 16 order of the Securities Appellate Tribunal (SAT), which had refused to stay the Smartworks IPO. Infrastructure Watchdog challenged this decision before the Supreme Court.
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During earlier hearings, Senior Advocate Narender Hooda, appearing for the NGO, produced what he claimed was a letter from the Ministry of Corporate Affairs (MCA) to SEBI suggesting that investigations were pending against the Sarda family, the promoters of Smartworks.
This claim was immediately disputed by Senior Advocate Gopal Subramanium, representing the respondents. The counsel pointed out that a query under the Right to Information Act made to the MCA confirmed that no such letter had been issued. The counsel argued that the NGO had attempted to mislead the Court by relying on fabricated material.
The Bench of Justices P.S. Narasimha and A.S. Chandurkar observed that such conduct was serious and warned that if the document was proven false, prosecution could follow. On being informed by SEBI and the respondents that the alleged MCA letter did not exist, the court explained that it would not initiate punitive action on this occasion but any future attempt to mislead the Court would attract strict consequences.
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The court also expressed dissatisfaction with the role of the NGO’s lawyers, with Justice Narasimha questioning how such a document was permitted to be filed and observing that lawyers should serve as the first barrier against doubtful material reaching the Court’s record.
The Supreme Court dismissed the appeal, making it clear that the NGO was let off with a warning this time but similar conduct in the future would not be tolerated. The Supreme Court’s detailed order in this case is awaited.
Case Details
Infrastructure Watchdog vs Securities and Exchange Board of India (SEBI)
Diary Number: 38576/2025
Case Number: C.A. No. 011064 / 2025
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