SAT quashes Sebi's order against 2 ex-directors of Sanghi Plantations

The Securities Appellate Tribunal (SAT) on Thursday quashed regulator Sebi's order against two former directors of Sanghi Plantations Ltd in a matter related to illegal money garnering from public under unregistered collective investment scheme.

Siddharth Sanghi and Amit Sanghi are the former directors of the firm against against whom the order is quashed.

While setting aside Sebi's order, the tribunal noted that "we find that the appellants ... were appointed as directors for a limited period between 2008 and 2009. During this period, no amount was collected under the CIS. There is no finding that the amount collected had matured during the period when these appellants were the directors."
It further said that "in our opinion, these directors could not be fastened the liability to refund the amount as they had neither collected the money nor were responsible for disbursement of the money to the investors at that stage."
The tribunal, while quashing the order against Siddharth Sanghi and Amit Sanghi said, Sebi's order against them "cannot be sustained and is quashed."