We explained that SECP’s demand simply amounted to extortion

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This ED acknowledged that SECP had a precarious legal position as it had communicated its intent to order the special audit subject to payment of money that it could not demand. But that he wished to resolve the matter without causing anyone any embarrassment and that SECP meant to defray audit expenses that it could not pay due its tight financial situation. We explained that SECP's demand simply amounted to extortion, and while the regulator could independently decide that the case was not fit for exercise of suo moto powers under Section 234 A, once it concluded that such audit was desirable, the same could not be made contingent upon extraction of money from a bona fide complainant.

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