JUDGMENT

Kirpal, J.—The Reserve Bank of India noticed large-scale irregularities and mal-practices in transactions in both the Government and other securities indulged in by some brokers in collusion with the employees of various banks and financial institutions. The said irregularities and mal-practices had led to the diversion of fund from banks and financial institutions to the individual accounts of certain brokers.

2. With a view to deal with this situation and in particular to ensure speedy recovery of

the huge amounts involved, the Special Court (Trial of Offences relating to ‘transactions in securities’) Ordinance, 1992 was promulgated on 6th June, 1992. The said Ordinance has now been replaced by an Act known as Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 (hereinafter referred to as ‘the Act’). Section 3 of the Act enables the Central Government to appoint one or more Custodian for the purposes of the Act. The Custodian has power under sub-section 2 of Section 3 to notify the name of any person in the official gazette, who has been involved in any offence relating to transactions in securities after the first day of April, 1991 and on/o