The Special Court (Trials of Offences Relating to Transactions in Securities), Bombay is established to deal with specific types of cases. During the course of the investigations by the Reserve Bank of India it observed that large scale of irregularities and malpractices were in action in both the Government and other Securities indulged by some brokers in collusion with the employees of various banks and which led to the diversion of funds from banks and financial institutions to the individual accounts of certain brokers.
In order to restore the confidence and maintain the basic integrity,credibility of the banks and financial institutions, the Government of India promulgated an Ordinance (Trial of Offences Relating to Transactions in Securities),1992 on 6th June, 1992, to deal with the situation and in particular to ensure the speedy recovery of the huge amount involved and to punish the offenders.
The Hon'ble Sitting Judge/s of the High Court is/are nominated as Judge/s of the Special Court and he/they is/are empowered to take necessary action for speedy trial of offences relating to transactions in securities and disposal of the properties attached by the Custodian. It also provides for appointment of one or more Custodian/s for attaching the properties of the offenders with a view to prevent disposal of the such properties by the offenders.
Subsequently, the aforesaid Ordinance was repealed by Special Court (TORTS) Act, 1992, and was further amended on 25th January,1994.