BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Appeal No. 87 of 2011
Date of decision: 11.7.2011 M/s Murli Industries Limited
101, Jai Bhawani Society, C. A. Road,
Wardhaman Nagar, Nagpur.
……Appellant
Versus
The Whole Time Member,
Securities and Exchange Board of India
SEBI Bhavan, Plot No. C-4A, G Block,
Bandra Kurla Complex, Bandra (East),
Mumbai – 400 051.
…… Respondent
Mr. V. Sridharan, Advocate with Mr. Prashant Agarwal, Mr. T. Sundar
Ramanathan, Advocates for the Appellant.
Mr. Shiraz Rustomjee, Advocate with Ms. Harshada Nagare, Advocate for the
Respondent.
CORAM : Justice N. K. Sodhi, Presiding Officer
P. K. Malhotra, Member
S. S. N. Moorthy, Member
Per : Justice N. K. Sodhi, Presiding Officer (Oral)
This order will dispose of 13 appeals all of which are directed against the
order dated March 23, 2011 passed by the whole time member of the Securities
and Exchange Board of India by which he has confirmed the ad interim ex-parte
order dated December 2, 2010 against the appellants. By order dated
December 2, 2010 the appellants, among others, had been restrained from dealing
in the securities of Murli Industries Ltd. and its group companies pending
investigations. They had also been directed to ensure that the shareholding of the
promoter/promoter group entities in the aforesaid company is not altered.
- The Securities and Exchange Board of India (for short the Board) had
received a reference from the office of the Assistant Commissioner of Income
Tax, Central Circle, Nagpur in regard to Murli Industries Limited wherein it was
pointed out that as many as 10 entities all of which were being looked after by one 2
Amit Raja CA were holding substantial shares in the company. The income tax
authorities had raided the premises of Murli Industries Ltd. and other associate
entities and discovered certain documents suggesting that the shares of the
company were being manipulated. The Board looked into the matter and the
investigations are still on. Preliminary investigations revealed that one Dangi
group of companies had manipulated not only the scrip of Murli Industries but of
a few other companies as well. The Board is investigating into all this. After
collecting some material the entities including the appellants were restrained by
an ex-parte order which was subsequently confirmed.
We have heard the learned counsel for the parties and since the
investigations are still on, we are not inclined to interfere in the matter at this
stage. It is true that a restraint order is operating against the appellants but the
Board also needs time to complete the investigations. Having regard to the facts
and circumstances of these cases and keeping in view the equities, we dispose of
these appeals with a direction to the Board to complete the investigations qua the
appellants expeditiously and in any case before the end of this year. The
appellants shall cooperate with the investigations. No costs.
Sd/-
Justice N. K. Sodhi
Presiding Officer
Sd/-
P. K. Malhotra
Member Sd/-
S. S. N. Moorthy
Member
11.7.2011
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