Anil Ambani has filed an appeal with the Securities Appellate Tribunal (SAT) challenging the SEBI order barring him from the securities market for alleged diversion of funds from Reliance Home Finance, said sources in the know.
The tribunal will hear Ambani’s appeal for admission of the case on October 18, according to sources. He has contested the entire order, seeking a stay on his debarment and the Rs 25-crore penalty.
“The matter was mentioned (recorded) in SAT on Monday morning, and the tribunal has agreed to hold the admission hearing on October 18. The appeal was most likely filed last week, along with an application for a stay on SEBI’s entire order,” said one of the sources.
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On August 22, SEBI barred Ambani from the securities market for five years and imposed a Rs 25-crore fine for orchestrating a fraudulent scheme with his associates following an investigation into alleged funds diversion at Reliance Home Finance (RHFL).
The regulator also barred 24 other entities, along with three former key officials of the company, for five years. The restrained entities include former key officials of RHFL – Amit Bapna, Ravindra Sudhalkar and Pinkesh R Shah. The regulator levied a fine of Rs 27 crore on Bapna, Rs 26 crore on Sudhalkar and Rs 21 crore on Shah.
Sources said RHFL and Pinkesh R Shah have also filed separate appeals with the SAT against the SEBI order, which are scheduled to be heard on October 17. These appeals were probably filed with the tribunal two weeks back.
SEBI has also restrained Ambani and his associates from being associated with any listed company as a director or key managerial personnel (KMP) for five years.
Soon after the order was passed, Ambani’s spokesperson said he was reviewing the order and will take appropriate next steps as legally advised.
A statement said Ambani had resigned from the boards of Reliance Infrastructure and Reliance Power pursuant to SEBI’s interim order dated February 11, 2022, in the matter of Reliance Home Finance, and “is in compliance with the said interim order for the last two-and-a-half years”.
Following several complaints of alleged funds diversion in Reliance Home Finance during FY18-19, SEBI investigated the matter and found that Ambani “is the mastermind behind the fraudulent scheme by preponderance of probability”.
“The facts of this case are particularly disturbing since they reveal a complete breakdown of governance in a large, listed company, apparently orchestrated by and/or at the behest of the promoter, aided by the indulgent KMPs of the company,” SEBI had said.
The investigation concluded that key managerial personnel of RFHL, including Anil Ambani, siphoned off funds from the listed company (RHFL) by structuring them as ‘loans’ to credit-unworthy conduit borrowers, and in turn, to onward borrowers, all of whom were found to be ‘promoter-linked entities’.
From: financialexpress
Financial News
