Economist to face trial for writing defamatory article

Ajay Shah, an economist and member of the Reserve Bank of India, will face trial for writing what is claimed to a defamatory article against Multi Commodity Exchange of India in February 2009, reports HT Correspondent.

Ajay Shah, an economist and member of the Reserve Bank of India, will face trial for writing what is claimed to a defamatory article against Multi Commodity Exchange of India (MCX) in February 2009.

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Shah will have to appear before a metropolitan magistrate after the Bombay High Court refused to stay the summons issued to him. While rejecting his application earlier this month, Justice D G Karnik said: “There is no presumption that eminent and / or learned people would write articles only to educate the public at large and in good faith. Experience has shown otherwise.”

On the case, Justice Karnik said: “Shah was a member of the board of directors of NCDEX (National Commodities Ex-change of India), a rival exchange competing with MCEX, which has alleged the article was written with malafide interest.”

Shah allegedly wrote the article in May 2006.

After MCX issued a notice, he wrote a second allegedly defamatory article in June 2006, and a third article on February 4, in a leading financial newspaper. The court said it seemed as if “applicant (Shah) was campaigning for a rival exchange and condemning the complainant (MCX).”

The court also rejected Shah’s defence that the articles were written for “public good and in good faith.”

MCX had lodged a complaint alleging that the article was “slanderous and defamatory and full of innuendo.”