SAT dismisses appeals filed by directors of Cemendia Infrastructures

The Securities Appellate Tribunal (SAT) has dismissed appeals filed by the directors of Cemendia Infrastructures Ltd challenging proceedings initiated by regulator Sebi to recover funds that were illegally mobilised by the firm.

The directors are Sunipa Das, Byomkesh Das, Ashok Maji, Sanjay Das, Gora Chand Sarkar, Pranesh Debnath, Laxman Chandra Ghosh, Tapas Dey, Radhashyam Manna and Dhananjay Chakraborty.

Sebi in an order passed in November 2016 held that the firm and its directors had illegally collected money through non-convertible debentures (NCDs) in violation of public issue norms and, consequently, passed several directions against the firm and its directors.

Among other directions, Sebi had directed them to refund the illegally mobilised amount along with interest which was required to be paid jointly and severally by the company and its directors.

According to Sebi's order passed in November 2016, Cemendia Infrastructures had mobilised Rs 1.31 crore from 1,665 investors.

Since the amount was not paid, recovery proceedings were initiated, the tribunal noted in its order dated February 21.

The directors filed an appeal before the tribunal and stated that as per Sebi whole-time member's order, only Anita Ghosh Choudhary, Subrata Samanta and Gora Chand Sarkar were liable for violation of the public issue norms and were held liable for refund of the entire amount.

"It was urged that the recovery against the appellants pursuant to the impugned order was wholly incorrect and, therefore, they should be absolved from appearing before the recovery officer," SAT noted.

Dismissing the complaint, the tribunal said, "All the submissions may be raised before the recovery officer. If so raised, the recovery officer will deal with it. We may also point out that the order dated November 1, 2016, has not been challenged by the appellants before us... we do not find any error in the order of the recovery officer at this stage.