Securities Appellate Tribunal
Liberal Realtors Llp vs Sebi on 18 May, 2023
Author: Tarun Agarwala
Bench: Tarun Agarwala
BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Decision : 18.05.2023
Appeal No. 703 of 2021
Surenderkaur Paramjeet Panesar
401, Plot No. 27,
Sadhana Apartments,
Road No. 2, Liberty Garden,
Malad (West),
Mumbai - 400 054. .....Appellant
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400 051. ... Respondent
Mr. Prakash Shah, Advocate with Mr. Kushal Shah, Advocate
i/b Prakash Shah and Associates for the Appellant.
Mr. Shyam Mehta, Senior Advocate with Mr. Manish
Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav,
Advocates i/b The Law Point for Respondent - SEBI.
WITH
Appeal No. 704 of 2021
Paramjeet C. Panesar
Karta of Paramjit C. Panesar HUF
401, Plot No. 27,
Sadhana Apartments,
Road No. 2, Liberty Garden,
Malad (West), .....Appellant
Mumbai - 400 054.
Versus
2
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400 051. ... Respondent
Mr. Prakash Shah, Advocate with Mr. Kushal Shah, Advocate
i/b Prakash Shah and Associates for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani,
Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b
The Law Point for Respondent - SEBI.
WITH
Appeal No. 705 of 2021
Satnamsingh Panesar
Karta of Satnamsingh Panesar HUF
401, Plot No. 27,
Sadhana Apartments,
Road No. 2, Liberty Garden,
Malad (West), .....Appellant
Mumbai - 400 054.
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400 051. ... Respondent
Mr. Prakash Shah, Advocate with Mr. Kushal Shah, Advocate
i/b Prakash Shah and Associates for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani,
Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b
The Law Point for Respondent - SEBI.
3
WITH
Appeal No. 706 of 2021
Priya Kamal Kataria
501, Plot No. 27,
Sadhana Apartments,
Road No. 2, Liberty Garden,
Malad (West),
Mumbai - 400 054. .....Appellant
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400 051. ... Respondent
Mr. Prakash Shah, Advocate with Mr. Kushal Shah, Advocate
i/b Prakash Shah and Associates for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani,
Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b
The Law Point for Respondent - SEBI.
WITH
Appeal No. 707 of 2021
Avtarkaur S. Panesar
401, Plot No. 27,
Sadhana Apartments,
Road No. 2, Liberty Garden,
Malad (West),
Mumbai - 400 054. .....Appellant
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G-Block,
Bandra-Kurla Complex, Bandra (East),
Mumbai - 400 051. ... Respondent
4
Mr. Prakash Shah, Advocate with Mr. Kushal Shah, Advocate
i/b Prakash Shah and Associates for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani,
Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b
The Law Point for Respondent - SEBI.
WITH
Misc. Application No. 736 of 2022
And
Appeal No. 462 of 2022
1.Paramjeet C. Panesar Karta of Paramjit C. Panesar HUF 401, Plot No. 27, Sadhana Apartments, Road No. 2, Liberty Garden, Malad (West), Mumbai - 400 054.
2. Satnamsingh Panesar Karta of Satnamsingh Panesar HUF 401, Plot No. 27, Sadhana Apartments, Road No. 2, Liberty Garden, Malad (West), Mumbai - 400 054.
3. Surenderkaur Paramjeet Panesar 401, Plot No. 27, Sadhana Apartments, Road No. 2, Liberty Garden, Malad (West), Mumbai - 400 054.
4. Priya Kamal Kataria 501, Plot No. 27, Sadhana Apartments, Road No. 2, Liberty Garden, Malad (West), Mumbai - 400 054.
55. Avtarkaur Satnamsingh Panesar 401, Plot No. 27, Sadhana Apartments, Road No. 2, Liberty Garden, Malad (West), Mumbai - 400 054. .....Appellants Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Mr. Prakash Shah, Advocate with Mr. Kushal Shah, Advocate i/b Prakash Shah and Associates for the Appellant.
Mr. Shyam Mehta, Senior Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
WITH Misc. Application No. 919 of 2022 And Appeal No. 574 of 2022 Megha Rameshbhai Mehta Nirman, Park Colony, Opp. Sumangal Society, Jamnagar - 361 008. .....Appellant Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Mr. Prakash Shah, Advocate with Mr. Kushal Shah, CA and Mr. Dipak Sheth, CA i/b Dipak V Sheth & Co. for the Appellant.
6Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
WITH Misc. Application No. 920 of 2022 And Appeal No. 575 of 2022 Amit Rajnikantbhai Sheth 3, Patel Colony, Road No. 1/a, Yashoda, Jamnagar, Gujarat, India - 361 008. .....Appellant Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Mr. Prakash Shah, Advocate with Mr. Kushal Shah, CA and Mr. Dipak Sheth, CA i/b Dipak V Sheth & Co. for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
WITH Misc. Application No. 921 of 2022 And Appeal No. 576 of 2022 Isha Hiteshbhai Mehta Vasant, Plot No. 31, Ketan Society, Near Badminton House, Jamnagar - 361 001. .....Appellant 7 Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Mr. Prakash Shah, Advocate with Mr. Kushal Shah, CA and Mr. Dipak Sheth, CA i/b Dipak V Sheth & Co. for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
WITH Appeal No. 582 of 2022 DJS Stocks and Shares Limited 1216, Stock Exchange Tower, Fort, Mumbai, Maharashtra - 400 023. .....Appellant Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Mr. Sukrut Mhatre, Advocate for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
WITH Appeal No. 583 of 2022
1. Victory Sales Pvt. Ltd.
No. 60a Jariwala Building, 3rd Floor, Tardeo, Sane Guruji Road, Mumbai, Maharashtra - 400 034.
82. Dahyabhai Purshotamdas Chauhan A/9, Anand Nagar, Gowalia Tank, Forjeet Street, Mumbai, Maharashtra, India - 400 036.
3. Shyam Alcohol And Chemicals Ltd. A/10, 3rd Floor, Navita Appts, Natakwala Lane, Borivali (West), S V Road, Mumabi, Maharashtra, India - 400 092.
4. Bijal Vipul Bhatt 42 Jariwala Building, Kavita Apt, Natakwala Lane, Sane Guruji Marg, Mumbai, Maharashtra, India - 400 034.
5. Sagar Girish Bhatt 3/10 Kavita CHS, A Wing, 18, Natakwala Lane, S V Road, Borivali (West), Mumbai - 400 092.
6. Vipul Vipur Bhatt 43/3, Jariwala Building, Tardeo, SG Road, Mumbai, Maharashtra - 400 034.
7. BK Dyeing & Printing Mills Pvt. Ltd. 60-a/3/479/Jariwala Bldg, Sane Guruji Road, Tardeo, Mumbai - 400 034.
8. Sampada Chemicals Limited Parijat House, 2nd Floor, 1076, Dr. E Moses Road, Worli, Mumbai, Maharashtra - 400 018.
9. Acute Consultancy Limited 60 A/3/479, Sane Guruji Road, Jariwala Building, Tardeo, Mumbai - 400 034.
10. Amisha Sudhir Bhatt 44 3rd Floor, Jariwala Bldg., Tardeo, Tulsiwadi, P O Mumbai - 400 034.
911. Deepika Sudhir Bhatt Through her legal representative 3/42, M H No. 479, Jariwala Bldg., Sane Guruji Marg, Tardeo, Mumbai, Maharashtra, India - 400 032.
.....Appellants Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Ms. Akshaya Bhansali, Advocate with Mr. Suyash Bhandari, Ms. Nirali Mehta, Practicing Company Secretary i/b Mindspright Legal for the Appellants.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
WITH Appeal No. 584 of 2022
1. Bhanabhai Ganpat Parmar 50, 2nd Floor, Room 23,Tenament Municipal Bldg., Belasis Bridge, Tardeo, Mumbai - 400 034.
2. Kaushik Balubhai Madhwani 364, Cigaratte Wala Building, 2nd Floor, R 25 SVP Road, Mumbai - 400 004. .....Appellants Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent 10 Ms. Akshaya Bhansali, Advocate with Mr. Suyash Bhandari, Ms. Nirali Mehta, Practicing Company Secretary i/b Mindspright Legal for the Appellants.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
WITH Appeal No. 585 of 2022
1. Dinesh Natha Pagi 3rd Floor, R/60, Jariwala Building, 479 Arthur Road, Tardeo, Mumbai - 400 034.
2. Raman K Pagi Room No. 10, Siddharth Nagar, Vakola Pipe Line, Santacruz East, Mumbai, Maharashtra, India - 400 055.
3. Bharat Raman Pagi 60-a 3rd Floor, Jariwala Building, Sane Guruji Marg, Tardeo, Mumbai - 400 034. .....Appellants Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Ms. Akshaya Bhansali, Advocate with Mr. Suyash Bhandari, Ms. Nirali Mehta, Practicing Company Secretary i/b Mindspright Legal for the Appellants.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
11WITH Appeal No. 615 of 2022
1. Liberal Realtors LLP 601, Orchid Plaza, Off. S.V. Road, Near Platform No. 1, Borivali (West), Mumbai - 400 092.
2. Iceworth Reality LLP 4, 2nd Floor, Shail, Near Swagat Restaurant, Opp. Madhusudan House, Navrangpura, Ahmedabad, Gujarat - 380 009. .....Appellants Versus Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ... Respondent Mr. Kunal Katariya, Advocate with Mr. Anil Shah, Ms. Shrishti Shashi i/b Juris Matrix Partners LLP, Advocates & Solicitors for the Appellant.
Mr. Suraj Chaudhary, Advocate with Mr. Manish Chhangani, Ms. Samreen Fatima and Mr. Sumit Yadav, Advocates i/b The Law Point for Respondent - SEBI.
CORAM : Justice Tarun Agarwala, Presiding Officer Ms. Meera Swarup, Technical Member Per : Justice Tarun Agarwala, Presiding Officer (Oral) 12
1. The show cause notice was issued to 89 noticees by the Whole Time Member ('WTM' for short) of the Securities and Exchange Board of India ('SEBI' for short) and after considering the matter, the WTM passed an order dated September 6, 2021 holding that noticee nos. 1 to 6 i.e. the Company and its Directors had devised an arrangement whereby 83 connected entities, namely, noticee nos. 7 to 89 had manipulated the price of the scrip in four patches of trading during the investigation period thereby violating Regulation 3 and 4 of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market) Regulations, 2003 ('PFUTP Regulations' for short). The WTM further found that 77 of these 83 entities were also counterparties to the sale of shares by 1059 entities / allottees and thereby created artificial inflation and volume of trading which was manipulative and fraudulent and again violative of Regulation 3 and 4 of the PFUTP Regulations. The WTM accordingly debarred noticee nos. 1 to 6 from accessing the securities market for a period of one year and notice nos. 7 to 89 for a period of six months.
2. For the same violation and for the same cause of action the Adjudicating Officer ('AO' for short) also initiated 13 proceedings by issuance of a show cause notice to 86 noticees and after considering the matter directed these 86 noticees to pay a penalty of Rs. 1 crore jointly and severally under Section 15 HA of the SEBI Act, 1992. 32 noticees have filed 14 appeals against the order of the WTM as well as the order of AO. This Tribunal at the time of entertaining the appeal had stayed the debarment order and had further directed the appellants to deposit a sum of Rs. 2 lakh each.
3. During the course of hearing of the appeal it was urged that apart from the merits the order of disgorgement jointly and severally was wholly illegal as the appellants were not inter-connected with the other noticees and consequently in this regard urged that the appellants would be happy if the penalty against each of the appellants is confined to Rs. 2 lakh each as directed in the interim order without prejudice to their rights on this issue to contest the matter on merits.
4. It was also stated that for the same violation SEBI has initiated criminal proceedings which is pending before the Sessions Judge, Mumbai. It was urged that the SEBI would be relying upon the orders of the AO and WTM before the Sessions Judge, Mumbai.
145. Considering the aforesaid this Tribunal is of the view that in the given circumstances each of the appellants should pay a sum of Rs. 2 lakh each. This observation of the Tribunal was not opposed by the respondent.
6. Considering the aforesaid and for the reasons stated aforesaid, we dispose of the appeals with the following directions:-
(a) We direct the appellants to deposit a sum or Rs. 2 lakh each.
(b) If the said amount is deposited, the balance amount shall not be recovered. Any deposit made by the appellants pursuant to the interim order would be adjusted accordingly.
(c) The debarment period is reduced to the period underwent by the appellants.
(d) The impugned orders of the AO and WTM will not be utilized by either of the parties in the criminal proceedings pending before the Sessions Judge, Mumbai or before any other authority and 15 that the Session Judge would not be influenced by the orders of the AO, WTM or of this Tribunal.
7. The appeals are disposed of in terms of the aforesaid directions with no order as to costs. The miscellaneous applications are disposed of.
8. This order will be digitally signed by the Private Secretary on behalf of the bench and all concerned parties are directed to act on the digitally signed copy of this order.
Certified copy of this order is also available from the Registry on payment of usual charges.
Justice Tarun Agarwala Presiding Officer Ms. Meera Swarup Technical Member 18.05.2023 MADHUKAR Digitally MADHUKAR signed by SHAMRAO SHAMRAO BHALBAR Date: 2023.05.19 BHALBAR 15:31:54 +05'30' msb