Bombay HC Holds Pallav Sheth Guilty Of Contempt For Concealing Bank Accounts And Financial Transactions

Mumbai, August 10, 2026: Stockbroker Pallav Sheth, 70, whose name figured prominently in the 1992 securities scam, has been held guilty of contempt of court by the Bombay High Court for concealing bank accounts and financial transactions despite being directed to fully disclose his assets.

Justice NJ Jamadar, on August 7, sentenced Sheth to one month’s simple imprisonment and imposed a fine of Rs 2,000. The detailed order copy was made available on Monday. The court also reopened his public examination and permitted the Official Assignee to take steps to recover his undisclosed assets.

Canbank Raised The Issue

The High Court was hearing a petition filed by Canbank Financial Services Ltd, a petitioning creditor that also holds a decree against Sheth. In 2024, Canbank approached the court after a third party informed it that Sheth was conducting financial transactions through an undisclosed ICICI Bank account.

The proceedings arose after it was found that Sheth had failed to disclose accounts with ICICI Bank, Model Co-operative Bank and HDFC Bank, despite undertaking to make full disclosure during his insolvency proceedings.

Court Finds Contradictory Explanations

The ICICI Bank account at Nariman Point was opened in January 1999. However, in his first affidavit, Sheth claimed that he had opened it only in September 2022, after his public examination. When bank records showed otherwise, he changed his stand and claimed that no permission was required since the account pre-dated his declaration as insolvent.

The court said his changing explanations "betray an intent to mould the defence to suit the convenience at the given point of time."

A Model Co-operative Bank account opened in January 2003 was also not disclosed. Sheth claimed it was in his wife’s name, but bank records showed it was held in his own name.

Similarly, an HDFC Bank account opened in February 2019 was claimed by Sheth to have been opened in September 2022. Records, however, showed transactions from February 2019. The account had 192 credit and 639 debit transactions, involving about Rs 4.67 crore each. The ICICI account recorded credits of Rs 10.50 crore.

False Statements Aggravated Matter

Sheth claimed that over Rs 6.5 crore received from a woman identified as "L" was towards consultancy and guidance in her legal proceedings. The court rejected the explanation, saying the account statements did not support his claim.

The court also rejected his apology, holding that his affidavits contained deliberate false statements. "The filing of affidavits with false contentions" during contempt proceedings, it said, further aggravated the matter.

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Sheth claimed he had not carried out any trade or business for 30 years and that amounts transferred to his accounts were loans from a neighbour. He also sought leniency citing his age.

The court, however, held that the suppression of accounts and transactions was deliberate and found him guilty under Section 33(4) of the Insolvency Act, 1909.

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