SAT restrains Sebi from recovering Rs 2 cr for 4 weeks in IPO case

Securities Appellate Tribunal has restrained Sebi from taking any "coercive steps" to enforce a demand for Rs 2.13 crore for four weeks in a case involving a couple in fraudulent market activities.

In December, Securities and Exchange Board of India had issued a demand notice to Dushyant Dalal and his wife Puloma Dalal to pay Rs 2.13 crore as interest on the unlawful gains made by them through initial public offering of several firms including IDFC, Suzlon Energy, between 2003-05.

Earlier this month, Sebi had confirmed the demand of Rs 2,13,30,000 crore from Dalals after a communication from the couple stated that they were not obligated to pay the same.

The couple informed to SAT that they plan to file an appeal on the matter within a week. They also requested that their joint demat account be attached for recovering the amount, instead of the banks accounts held by them.

In an order on January 17, the tribunal has asked Sebi that shares in joint demat "shall stand attached forthwith and in lieu thereof attachment levied on all other bank accounts of appellants shall stand raised forthwith".

It added: "Since appellants desire to file appeal against communication dated January 16, 2014, respondent (Sebi) shall not take coercive steps to enforce demand raised under above communication dated January 16, 2014 from the attached demat account...For a period of four weeks from today."

Further, on the couple's plea on lifting the capital market restrictions imposed on them by Sebi for non-compliance with the disgorgement order, the tribunal said that if an application in this regard is made by the couple "within a period of two weeks from today, Sebi shall consider the same and pass appropriate order within a period of six weeks thereafter".

The case relates to Sebi's order against Dushyant and Puloma Dalal in July 2009 wherein the couple were called upon to disgorge unlawful gain of Rs 4.05 crore made with simple interest thereon at the rate of 12% for four years (2005-2009). The total amount to be disgorged by the Dalals with interest was valued at a total of Rs 6 crore.

On October 29, 2013, the market regulator had issued orders to attach banks accounts of the Dalals after the couple defaulted in disgorging Rs 6 crore as ordered. Subsequently, the amount was paid by the couple.

Meanwhile, on December 12, 2013, Sebi by a demand notice had called upon the Dalals to pay Rs 2.13 crore as interest on the disgorgement amount for the period from 2009.