Diversion of funds for other than stated purposes is fraud which cannot be cured by shareholder ratification

Securities and Exchange Board of India Vs Terrascope Ventures Limited Etc. (Supreme Court of India) Supreme Court held that diversion of funds raised through preferential allotment for purposes other than those stated in offer document/prospectus/notice establishes as fraud and the same cannot be cured by consequent shareholder ratification. Facts- The present appeals, u/s. 15Z of the Securities and Exchange Board of India Act, 1992, call in question the correctness of the order dated 02.06.2022 passed by the Securities Appellate Tribunal. The Tribunal set aside the orders of the Adjudicating...