The court's order is to prohibit the company from raising capital. This decision comes at a time when Vikas Garg and his business associates are facing a regulatory investigation. The injunction was the result of a case by Fairplan Distributors Pvt. Ltd., which is a minor stakeholder with 23.46% holding of equity. The plaintiff made claims against the company's management. The allegations include claims of fraud, as well as misuse of funds.

The Court's Restraining Order. The Patiala House Court ordered Advik Laboratories to stop taking any steps in raising funds under the current scheme. Under the order, the company is restrained from:

* Filing the official Letter of Offer with the Securities and Exchange Board of India (SEBI);

* Sending any offer documentation to shareholders;

* Opening the chance of public or private subscription;

* Accepting subscription funds

According to the plaintiff, this was the third try by the company to raise funds, that too in a span of four years. Concerns were raised against the company and its management in different legal forums. The Court has said that these are initial observations and the defendants, including Vikas Garg, will get the chance to defend themselves on 22nd August, 2026. But the freeze will affect the company's plan to raise funds.

Increasing Legal Pressure on The Company

The court's order increases the long legal battles Advik Laboratories and Vikas Garg is facing. He is facing multiple civil and criminal investigations.

Alleged Improper Share Transfer and Police Scrutiny (2025): Previously, the Patiala House Court ordered Delhi Police to take an Action Taken Report (ATR) due to the criminal complaints made by GTM Builders. The complaints were against Garg and associates; they were mainly accused of unauthorized and fraudulent transfers of equity shares.

SEBI Market Penalties: A market regulator entity like SEBI had also taken action against Vikas Garg and Advik Capital Ltd. The reason behind this action was delays under the Substantial Acquisition of Shares and Takeovers (SAST) Regulations. The reports say that some delays were up to 234 days long.

CBI Proceedings and Media Reports: Garg has also faced investigations because of his previous professional activities. The charges were related to financial imperfections. Along with this, the investigation report also shows that there were networks of shell entities and fake billing made to evade taxes.

The Court order has stopped the fundraising plan. Many regulatory boards are investigating Vikas Garg's corporate network, which will result in increased attention on the upcoming court hearing.