SAT allows Sebi Member to hear case, withdraws earlier order

The Securities Appellate Tribunal (SAT) has reinstated a case relating to Adventz Finance back to a Whole Time Member of Sebi, withdrawing its earlier order asking the matter to be heard by another Member.
After hearing a review application filed by Sebi, the tribunal has also agreed to drop the cost of Rs 1 lakh it had imposed on the regulator, while the Sebi Member has been now asked to pass an appropriate order within a week after giving an opportunity of hearing to the appellant.
In its earlier direction, SAT had said it was "distressed" with the manner the case was handled. As the Member earlier handling the case was travelling at that time, SAT had asked Sebi to assign the case to another Member.

In its latest order passed yesterday, SAT said, "Alongwith the Review Application, Sebi has filed an affidavit of the Chief General Manager and affidavit of the Whole Time Member of Sebi, wherein unconditional apology is tendered and it is inter alia requested that the WTM of Sebi who had heard the matter on June 21, 2016 be permitted to pass an order within such time as this Tribunal deems fit and that the costs awarded be waived."
The three-member SAT bench, headed by Presiding Officer Justice J P Devadhar, further said, "In view of the assurance given to the effect that appropriate orders would be passed in accordance with law, we modify our order dated July 15, 2016 and permit the WTM of Sebi who had heard the appellant on June 21, 2016 to pass an appropriate order in accordance with law within one week from today after giving an opportunity of hearing to the appellant."

With regard to the the waiver of costs, SAT said the counsel for appellant has said she was not pressing for costs and therefore it was modifying its earlier order "by deleting the costs imposed on Sebi".

In its earlier order dated July 15, SAT had asked Sebi to pay Rs 1 lakh to the appellant, saying "the appellant was made to run around on account of apathy on part of WTM of Sebi".
In its earlier order, SAT had recalled it had disposed of two earlier appeals in the Adventz case on May 6 "by recording the statement made by counsel of Sebi that the representations made by the appellants therein would be heard and disposed of within seven weeks from that day".

Although Sebi's WTM gave opportunity of hearing to the appellant on June 21, no order was passed till June 24, the date on which seven weeks from May 6 expired. Besides, the member did not seek extension of time from the tribunal for passing the order, it had said.