IL&FS Engineering mulls legal option against Sebi

Sebi had asked firm to disgorge Rs 59 cr, plus 12% interest for insider trading since Jan 2009 when Satyam's Raju controlled it

IL&FS Engineering and Construction Company might move the Securities Appellate Tribunal against a Securities and Exchange Board of India (Sebi) order asking the company to disgorge about Rs 59 crore. “The company shall explore and avail of all legal rights available to it under the law to protect its interests,” it said in a BSE filing.

On Thursday, Sebi had asked the company to pay Rs 59 crore, along with 12 per cent interest since January 2009, for alleged insider trading when it was under former Satyam chairman B Ramalinga Raju. At that time, the company was called Maytas Infra. The Sebi order also directed Raju and nine other entities to pay a combined Rs 1,800 crore, said to have been made by trading on unpublished information.

IL&FS Engineering said it had no role or involvement in the insider trading of the erstwhile Maytas Infra. “Infrastructure Leasing & Financial Services (IL&FS) was brought in as a new promoter of the company (Maytas) by the Company Law Board and did not have any role or involvement in the insider trading of Maytas Infra…(it) did not feel it necessary to restraint/debar IL&FS Engineering and Construction Company from accessing the capital market…(sic),” it said in the filing.

Typically, those aggrieved by Sebi orders or direction move Securities Appellate Tribunal, or SAT.

On Monday, the IL&FS Engineering stock closed at Rs 65.9 on the National Stock Exchange, down 0.68 per cent.