sebi:Order/AN/PR/2024-25/30413
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Facts / Headnote
Violation established; penalty imposed
Provisions invoked
- s. 11B
- s. 11
- s. 15
- s. 15H
- s. 15J
- s. 15F
- s. 28A
- s. 23E
- s. 186
Regulations
- Reg. 23
- Reg. 30
- Reg. 23(2)
- Reg. 23(4)
- Reg. 23(1)
- Reg. 23(5)
- Reg. 18(2)
- Reg. 18(2)(a)
Parties
- Majestic Auto Limited
Holding
The Noticee, Majestic Auto Limited, violated Regulation 23(2) and Regulation 23(4) read with Regulation 23(1) of LODR Regulations, 2015 for related party deposits with ETPL without prior audit committee and shareholder approval, and is liable under Section 15HB of the SEBI Act, 1992. A monetary penalty of Rs. 7,00,000 was imposed.
Full text
Adjudication Order in the matter of Majestic Auto Limited |Page 2 of 20 Manager, SEBI as Adjudicating Officer to inquire into and adjudicate the aforesaid alleged violations by the Noticee. Pursuant to the transfer of Ms. Maninder Cheema, Chief General Manager, Dr. Anitha Anoop, Chief General Manager, SEBI was appointed as the Adjudicating Officer (‘erstwhile AO’) vide Communique dated June 07, 2022. Thereafter, pursuant to the transfer of Dr. Anitha Anoop, undersigned was appointed as the Adjudicating Officer vide Communique dated September 05, 2022 read with Communique dated March 05, 2024 to enquire into and adjudge under Section 15HB of SEBI Act, 1992 for the alleged violations by the Noticee, as stated.
Adjudication Order in the matter of Majestic Auto Limited |Page 3 of 20 12. The Company has stated that the deposits discussed in the meeting of the Audit Committee meeting held on February 8, 2021 pertained to security deposit given to Indraprastha Gas Limited (IGL). IGL is not a related party but a public sector company. The Company further informed that it has been actively pursuing recovery with IGL and it was expected that the refund would take place upon completion of the contract in 2022.
Adjudication Order in the matter of Majestic Auto Limited |Page 4 of 20 the Audit Committee, the approval cannot be applied retrospectively to deposits placed with ETPL in April - May 2020. Deposits were placed 5 times with ETPL in the months of April - May 2020, amounting to Rs. 4.85 crores. Therefore, it is alleged that the Company is in violation of Regulation 23 (2) of LODR Regulations.
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Source: SecMarx — sebi:Order/AN/PR/2024-25/30413. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.