BEFORE THE SECURITIES APPELLATE TRIBUNAL
MUMBAI
Date of Decision: 25.4.2019
Misc. Application No.208 of 2019
And
Appeal No.141 of 2019
Mahendra Kumar
No.19/2, Rangarao Road,
Shankarapuram, Bengaluru,
Karnataka – 560 004.

…. Appellant
Versus
Securities and Exchange Board of India
SEBI Bhavan, Plot No.C-4A,
G Block, Bandra Kurla Complex,
Bandra (East), Mumbai – 400051.

… Respondent
Mr. Rajesh Khandelwal, Advocate i/b. Juris Link for the
Appellant.
Mr. Vivek Shah, Advocate with Mr. Abhiraj Arora, Advocate
i/b. ELP for the Respondent.
CORAM: Justice Tarun Agarwala, Presiding Officer
Dr. C.K.G. Nair, Member
Justice M.T. Joshi, Judicial Member
Per : Justice Tarun Agarwala (Oral)
Misc. Application No.208 of 2019
For the reasons stated in the application, the delay in
filing the application is condoned.
The Misc. Application is allowed.

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Appeal No.141 of 2019
1.

The
appellant
has
challenged
the
order
dated
28th March, 2018 by which a penalty of Rs.10 lakh has been
imposed under Section 15HA of the Securities and Exchange
Board of India Act, 1992 (referred to hereinafter as ‘SEBI
Act’) for violating Section 12A(a), (b) and (c) of the SEBI
Act and Regulations 3(a), (b), (c), (d) read with Regulation 4
of Securities and Exchange Board of India (Prohibition of
Fraudulent and Unfair Trade Practices relating to Securities
Market) Regulations, 2003 (referred to hereinafter as
‘PFUTP Regulations’).
2.

After hearing the matter at some length we find that the
violation is writ large and consequently penalty imposed does
not suffer from any error of law. However, considering the
facts and circumstances and the pecuniary situation of the
appellant as well as the contention of the appellant that he is
willing to pay the entire amount of Rs.10 lakh within two
weeks from today, we direct the appellant to deposit a sum of
Rs.10 lakhs on or before 15th May, 2019 before the SEBI. In
the event, the appellant deposits a sum of Rs.10 lakh on or
before 15th May, 2019 before the respondent no further
amount shall be realised pursuant to the impugned order. If a
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cheque is issued by the appellant SEBI will issue a
consequential direction to the related bank to allow
encashment of the cheque to that extent.
3.

Accordingly the appeal is disposed of on the aforesaid
terms.

Sd/Justice Tarun Agarwala
Presiding Officer
Sd/Dr. C. K. G. Nair
Member
Sd/Justice M.T. Joshi
Judicial Member
25.4.2019
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