The CBI will investigate allegations of bribery involving lawyers seeking a favourable NCLT order. A firm’s director filed a complaint against Mahi Bhat and Akshat Ketan, the proprietor of AU Corporate Advisory and Legal Services. They allegedly demanded a bribe in exchange for securing a favorable ruling. The case is now under CBI scrutiny.
The Central Bureau of Investigation (CBI) recently searched the residence of a retired member of the National Company Law Tribunal (NCLT) as part of an investigation into a case involving a law firm that allegedly solicited bribes to secure a favorable ruling.
The matter stems from a complaint filed by a director of a private investment firm against attorneys who purportedly offered him a favorable decision from the tribunal in exchange for a significant bribe.
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According to the complaint, dated January 27, 2025, a person named Mahi Bhat, linked to AU Corporate Advisory and Legal Services, contacted the director, claiming to have close connections with NCLT Mumbai member Reeta Kohli.
Bhat allegedly assured the director that she could secure a favorable judgment in an ongoing insolvency case for a fee of Rs.1.5 crore. After negotiations, the bribe was lowered to Rs.1 crore.
The CBI conducted verification of the complaint on January 28, 29, and February 3 and 4, 2025, in the presence of independent witnesses.
The findings confirmed that the complainant’s firm had filed a petition under Section 7 of the Insolvency and Bankruptcy Code (IBC) against another company with the NCLT Mumbai.
The Tribunal had completed hearings and reserved its order on August 29, 2024, but the order had not yet been issued.
Investigations revealed that Bhat, in conjunction with Akshat Khetan, the proprietor of AU Corporate Advisory and Legal Services, demanded the bribe under the guise of “fees.”
Despite the firm never having engaged Bhat’s services for legal representation, she allegedly conspired to influence tribunal members through corrupt means.
Further investigations revealed that Bhat initially demanded 50% of the bribe as an advance but later agreed to accept 20%, which amounted to Rs.20 lakh. This amount was deposited into an HDFC Bank account belonging to AU Corporate Advisory and Legal Services on February 4, 2025.
The remaining Rs 80 lakh was to be paid in cash on the day the final order was expected to be announced, anticipated before February 14, 2025.
The case has been registered under Section 61 (criminal conspiracy) of The Bharatiya Nyaya Sanhita (BNS), 2023, and Section 7-A (Taking undue advantage to influence a public servant by corrupt or illegal means) of the Prevention of Corruption Act, 1988.
Reeta Kohli, a designated Senior Advocate from the Punjab and Haryana High Court, currently serves as the Judicial Member at NCLT Jaipur.