Justice Manmohan, who posted the matter for further hearing on May 20 after issuing notice to Delhi Government to respond in a week's time, said that Delhi Government's Anti Corruption Branch (ACB) can continue with its investigation.
However, it will not take any coercive action against those named in the FIR, including officials and the private parties, the court said.
The court direction came today on oral submission made by senior advocate Abhishek Manu Singhvi who appeared for private parties and requested that there be no further investigation in the case.
"Issue notice. She (counsel for Delhi Government) is permitted to file counter reply within a week. You (Delhi Government's Anti Corruption Branch) carry on your investigation but no coercive action shall be taken against Union of India and against any of its officials related to it," the court said.
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Kejriwal had directed the Anti Corruption branch to register an FIR on the basis of a complaint by four prominent people, including former Cabinet Secretary TSR Subramanian.
The Kejriwal-led Delhi government had lodged the FIR naming Moily, Mukesh Ambani and others on gas pricing issue and had alleged the Congress-led UPA government "favoured" RIL with an eye on 2014 general elections and BJP maintained "silence" hoping to gain corporate funding for the polls.
Appearing for Centre, Solicitor General Mohan Parasaran had sought quashing of the FIR saying Anti-Corruption branch of the Delhi Government has "no powers or jurisdiction to investigate" complaints against the Union Government's decision to fix prices of natural gas.