The Andhra Pradesh HC dismissed an FIR registered by the state CID concerning insider trading in Amaravati (Andhra Pradesh).
The single-judge bench of Justice Cheekati Mavendranath Roy said that eventhough the sale was private, the right to sell and purchase land is a constitutional and legal right and could be criminalised.
Insider trading refers to the illegal practice of the selling and buying in the filed of stock markets done on the basis of secret files. The court said that could not apply to property.
The court further said that insider trading was not something that could be applied to offences under the IPC via Section 420 (cheating and dishonestly inducing property delivery) or any other provision in the code. The court said it was alien to the criminal system in India.
The FIR was lodged against one Kilaru Rajesh and the man was charged with dishonestly inducing property, criminal breach of trust, criminal breach of trust by a public servant, banker or merchant or agent, and criminal conspiracy.
This comes amidst allegations raised by the present Andhra Pradesh Govt, YSRCP against the former TDP government, where they claimed that the previous govt. was indulging in insider trading.