SAT lifts market ban imposed on Rose Valley director

The Securities Appellate Tribunal (SAT) today lifted the four-year capital market ban imposed by regulator Sebi on Abhijit Dutta, a director at Rose Valley Hotels and Entertainment, in a matter related to running of an unregistered collective investment scheme.

The SAT order follows a ruling of the Securities and Exchange Board of India (Sebi) last month, wherein the markets regulator had rejected a plea by Dutta for revoking the ban imposed on him.

In November 2017, Sebi had restrained Dutta and other directors from accessing the securities market for four years. Besides, they were disqualified from holding or assuming position as directors or key managerial personnel of any listed company for four years.

The decision was taken after Sebi had held that the firm and its directors were liable for launching and operating unregistered collective investment scheme. They were directed to wind up the company's holiday membership plans and refund investors' money.

Later, Dutta had approached the SAT, which stayed Sebi's ruling relating to disqualifying him from holding position as director or key managerial personnel at any listed company.

While staying the order, the tribunal had also made it clear that Dutta would not seek any fresh appointment as director or key managerial personnel of any firm till the disposal of the appeal.

In a fresh ruling today, the SAT said it is a matter of record that the Central Bureau of Investigation (CBI) and the Enforcement Directorate (ED) have investigated the issue relating to the funds raised by the company and its directors.

"Neither in the report of CBI nor in the report of ED the appellant (Dutta) is found to have played a role in the company raising funds in violation of the regulations framed by Sebi," the tribunal said.

SAT also noted that even in the November 2017 order except recording that Dutta was a past director of Rose Valley Hotels and Entertainment, the markets regulator has not found that he had a role in the firm raising funds in violation of Sebi regulations.

The restrictions imposed on Dutta in the November 2017 order "shall come to an end with immediate effect", the tribunal said.