9911796707
TMI Blog2018 (4) TMI 1798X X X X Extracts X X X X X X X X Extracts X X X X ..... said order penalty of Rs. 7 lac is imposed under Section 15H(ii) of the Securities and Exchange Board of India Act, 1992 ("SEBI Act" for short) on the appellants and two other persons for violating regulation 11(2) read with regulation 14(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 ("Takeover Regulations, 1997 for convenience) and regulation 35 of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and the appellants as also the other two persons are directed to pay the penalty of Rs. 7 lac jointly and severally. 2. It is not in dispute that on account of Shri Kunal Savla (Appellant No. 1) along with other persons, namely, Shri Pradeep Savla, Ms. Nirmala Savla (Appellant Nos. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the appellants after delay of more than eight years from the date on which SEBI came to know about the violations committed by the appellants. Admittedly, SEBI came to know about the violations committed by the appellants from the letter of offer filed by third parties on 12.06.2008, whereas, the show cause notice has been issued to the appellants belatedly on 30.06.2016. Neither the appellants were given any document before issuing show cause notice, nor any reason is given in the impugned order for issuing show cause notice belatedly after 8 years. b) No grievance is made by any investor or shareholders of the company, that failure to make open offer has caused prejudice to them. c) Since 2008, the appellants have severed their conne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decided on 16.12.2015) has distinguished the decision of this Tribunal in case of HB Stockholdings Ltd. (Supra) and has held that in the absence of any specific provision contained in the Takeover Regulations, 1997 for issuing a show cause notice, fact that there is delay on part of SEBI in initiating proceeding for the violations committed, cannot be a ground to quash the penalty imposed for such violations. 9. Argument of the appellants that the penalty imposed is exorbitant or excessive is also without any merit. Penalty imposable under Section 15H(ii) of SEBI Act for violating the open offer obligations contained in Takeover Regulations, 1997 is up to Rs. 25 crore, however, the AO after taking into consideration all mitigating factors ..... X X X X Extracts X X X X X X X X Extracts X X X X
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