TaxTMI 
TaxTMI 
2026 (4) TMI 1926
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....USTICE P. S. DINESH KUMAR, PRESIDING OFFICER This appeal is directed against recovery certificate dated January 19, 2024 issued by the Recovery Officer & Deputy General Manager, SEBI [Securities and Exchange Board of India] calling upon the appellant to pay a sum of Rs.80,24,914/--. 2. We have heard Mr. Manish Gupta, leaned Advocate for the appellant and Mr. Manish Chhangani, learned Advocate for the SEBI. 3. Brief facts of the case are, SEBI received a complaint from one Mr. Jitendra Suthar stating that based on the advice from Mapple Research, a proprietary firm of which appellant was the proprietor, he had lost Rs.5000 in the securities market. SEBI conducted an enquiry and issued an SCN [Show cause Notice]. Appellant did not re....
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....funded the fees collected except a sum of Rs.5000 to the complainant. This Tribunal has consistently held that fees collected by an unauthorized Investment Advisor cannot be retained by him. He placed reliance on Anoop Singh Tomar [Anoop Singh Tomar v. SEBI, Appeal No.127 of 2024 decided on 22.10.2024 by the Securities Appellate Tribunal, Mumbai] and Ankit Goel [Ankit Goel v. SEBI, Appeal No.672 of 2022 decided on 14.10.2022 by the Securities Appellate Tribunal, Mumbai]. 7. We have carefully considered the rival contentions and perused the records. 8. Undisputed facts are, SEBI issued an SCN alleging inter alia that appellant's proprietary firm was carrying on unregistered investment advisory services. Appellant did not reply to the S....
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....ed, being the proprietor of Mapple Research, would like to submit the same as under. First of all, I would like to bring on record the fact that I was fraudulently conduit to this scam by two of my friends who used my name to run this business and taken away the money received in the account. I am also a victim of this scam done by erstwhile trustworthy friends of mine. The entire operations of Mapple Research were done by them I am only a puppet to their tunes and instructions. B eing naive and un known to the intentions of them I agreed to sign the documents, bank checks, and other documents for the conduct of this business. As of now, those individuals are not traceable and can t be contacted too. As the business was do....
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....anch, Indore (MP) Date:28.01.2023 Indore CC: Office of Securities Exchange Board of India situated at Indore." 9. The above compliance report shows that appellant accepted the adjudication order without any demur. The WTM has quantified the total amount received by appellant through unregistered investment advisory services as Rs.68,58,045.65. Admittedly, appellant has refunded only Rs. to the complainant who had approached SEBI. Direction 21(e) in WTM's order required the appellant to file a report after completing the repayments. Appellant's argument is, he has refunded the money to the complainant and there was no other claim by any person in response to the public notices. SEBI's contention is that the appe....