SAT upholds Sebi's order levying fine of Rs 2,423 cr on PACL directors

The Securities Appellate Tribunal (SAT) on Tuesday upheld the fine of over Rs 2,423 crore levied by markets regulator Sebi on four directors of PACL Ltd for illegal fund mobilisation through various schemes from public.

The order comes following appeals filed by the company and its directors against an order passed by Sebi in September 2017, which imposed a penalty of Rs 2,423.16 crore on them.

The company and its directors had mobilised funds to the tune of over Rs 2,686 crore by running unregistered collective investment schemes between 2013 and 2014.

Passing the order, the tribunal said "in our view, the collection so made by the appellants and the other entities was wholly illegal and the decision of the AO (adjudicating officer) that the amount so collected under the collective investment scheme is the illegal profit earned by the appellants and other entities does not suffer from any manifest error of law. The total amount of realisation made by the company and its directors amounts to illegal profits made by them."