2025 (11) TMI 1350 - AT - SEBI

Penalty for ignoring SEBI summons under Sections 15A(a), 11C(2) and 11C(3) reduced to Rs2 lakh after long delay

AT considered an appeal against a 2010 SEBI order imposing penalty for non-compliance with summons under Sections 15A(a), 11C(2) and 11C(3) of the SEBI ... Non-compliance with summons by the SEBI to furnish information with regard to the scrip - violation Section 15A(a), 11C(2) and 11C(3) of the SEBI Act - imposed a penalty - final order was neither served by the RPAD nor by affixture - Challenged the said order with a delay of 14 years 91 days - HELD THAT:- Similar is the case with regard to final order, except that the same was published in the newspaper in the year 2019. Though initially several contentions were raised with regard to the service of the notice, appellant restricted his prayer only to the extent of quantum of penalty. The impugned order is of the year 2010. The charge against the appellant is that he did not respond to the summons. In the facts of this case, in our view, ends of justice would be met by directing the appellant to deposit a penalty of Rs. 2 lakhs without any interest within two weeks from today. Ordered accordingly. Appeal is disposed of. SEBI summoned the appellant to furnish information regarding the scrip of M/s. Mega Corporation Ltd., alleging non-compliance with summons and consequent violation of Section 15A(a), 11C(2) and 11C(3) of the SEBI Act, 1992. A penalty of Rs. 5 lakhs was imposed by an order dated August 6, 2010. The appeal against this order was filed with a delay of 14 years and 91 days. The appellant contended that neither the show cause notice nor the final order was served 'in the ordinary course either by RPAD or affixture or even by newspaper publication,' and that the final order surfaced only when it was published in a newspaper in 2019. While initially challenging the validity of service, the appellant ultimately did not press the appeal on merits and confined the challenge to the quantum of penalty, seeking imposition of minimum penalty. The Tribunal, noting the age of the matter and that the charge was only of non-response to summons, held that 'ends of justice would be met' by reducing the penalty to Rs. 2 lakhs without interest, payable within two weeks.