Mahendra Kumar vs Sebi on 25 April, 2019

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Securities Appellate Tribunal

Mahendra Kumar vs Sebi on 25 April, 2019

Bench: Tarun Agarwala

BEFORE THE SECURITIES APPELLATE TRIBUNAL
                MUMBAI


                                 Date of Decision: 25.4.2019

                           Misc. Application No.208 of 2019
                           And
                           Appeal No.141 of 2019

Mahendra Kumar
No.19/2, Rangarao Road,
Shankarapuram, Bengaluru,
Karnataka - 560 004.                            .... Appellant

                  Versus

Securities and Exchange Board of India
SEBI Bhavan, Plot No.C-4A,
G Block, Bandra Kurla Complex,
Bandra (East), Mumbai - 400051.                ... Respondent

Mr. Rajesh Khandelwal, Advocate i/b. Juris Link for the
Appellant.

Mr. Vivek Shah, Advocate with Mr. Abhiraj Arora, Advocate
i/b. ELP for the Respondent.

CORAM: Justice Tarun Agarwala, Presiding Officer
       Dr. C.K.G. Nair, Member
       Justice M.T. Joshi, Judicial Member

Per : Justice Tarun Agarwala (Oral)

Misc. Application No.208 of 2019

     For the reasons stated in the application, the delay in

filing the application is condoned.

     The Misc. Application is allowed.
                                2




Appeal No.141 of 2019

1.

The appellant has challenged the order dated 28th March, 2018 by which a penalty of Rs.10 lakh has been imposed under Section 15HA of the Securities and Exchange Board of India Act, 1992 (referred to hereinafter as 'SEBI Act') for violating Section 12A(a), (b) and (c) of the SEBI Act and Regulations 3(a), (b), (c), (d) read with Regulation 4 of Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 (referred to hereinafter as 'PFUTP Regulations').

2. After hearing the matter at some length we find that the violation is writ large and consequently penalty imposed does not suffer from any error of law. However, considering the facts and circumstances and the pecuniary situation of the appellant as well as the contention of the appellant that he is willing to pay the entire amount of Rs.10 lakh within two weeks from today, we direct the appellant to deposit a sum of Rs.10 lakhs on or before 15th May, 2019 before the SEBI. In the event, the appellant deposits a sum of Rs.10 lakh on or before 15th May, 2019 before the respondent no further amount shall be realised pursuant to the impugned order. If a 3 cheque is issued by the appellant SEBI will issue a consequential direction to the related bank to allow encashment of the cheque to that extent.

3. Accordingly the appeal is disposed of on the aforesaid terms.

Sd/-

Justice Tarun Agarwala Presiding Officer Sd/-

Dr. C. K. G. Nair Member Sd/-

Justice M.T. Joshi Judicial Member 25.4.2019 Prepared and compared by RHN

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