The Supreme Court of India has held that the post-facto ratification by shareholders cannot validate the illegal diversion of funds raised through a preferential issue for purposes other than those disclosed in the offer documents. Reversing an order of the Securities Appellate Tribunal (SAT), a bench comprising Justice J.B. Pardiwala and Justice K.V. Viswanathan restored
Post-Facto Ratification Cannot Legitimate Fraudulent Diversion of Preferential Issue Proceeds: Supreme Court
