The rationale for this petition revolves round the fact that in certain cases it has been found that shares declared as attached by the Special Court, in its earlier order dated March 2, 1994, pursuant to an application made by Harshad Mehta, are more than those declared by the companies and are yet to be declared benami shares.

These shares are over and above the shares attached by the Custodian earlier in 1994 following a Special Court order based on an application filed by the income tax authorities listing 22,08,220 shares in respect of 33 companies as benami shares.

In the case of The Custodian versus Harshad S Mehta and others, the petitioner (the Custodian) has, among other things, sought declaration of a large number of shares ofHarshad Mehta as benami and their attachment; permission to carry on certification of these shares by stock exchanges for a period of 6 months in respect of these shares.

Besides, the petitioner has sought a direction from the court declaring all rights, bonus, dividend accruing on shares issued after June 8, 1992, to also be treated as attached. Also, that Harshad Mehta be directed to disclose details of entities of his group holding the shares in question.

Directions from the Special Court have also been sought for the sale and transfer of benami shares, issue of public notice of benami entities and meeting all incidental expenses relating to the petition from the attached account of Harshad Mehta.

Pending hearing and final disposal of the petition (Miscellaneous Petition no.99 of 1998) before the Special Court, the Custodian has prayed for an order restraining respondent companies which number over 100 from transferring the shares or issuing any bonus, rights and dividends on such shares to anyperson other than the petitioner. The Court has also been requested to direct the respondent companies to furnish full particulars of benami shares of Harshad Mehta.

The petition before the Special Court contains details of (1) total benami shares with various companies as declared by the companies; (2) shares already declared as attached under orders of Special Court; (3) shares in physical custody of petitioner; and (4)shares declared by companies which are yet to be declared as attached.

The petitioner has also submitted to the court that "if further information is received in respect of further benami shares, the petitioner may be constrained to file further petition seeking declaration of further shares as benami shares."