sebi:Order/PM/AA/2018-19/790

SEBI · SEBI · 2004-06-02 · Prasanta Mahapatra, Adjudicating Officer

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Facts / Headnote

Disposed of without imposition of any penalty; allegations not established

Provisions invoked

• s. 15A
• s. 15I

Parties

• Varshaben Nilesh Trivedi

Holding

The alleged violations of Sections 11(3)(ii) and 11C(6)(c) of the SEBI Act, 1992 by the Noticee Varshaben Nilesh Trivedi were not established, and the matter was disposed of without imposition of any penalty.

Full text

Adjudication Order against Varshaben N Trivedi in the matter of Vision Organics Ltd. Page 2 of 7 3. Show Cause Notice no. EAD/AP/ADJ/74180/2006 dated August 11, 2006 (hereinafter referred to as “SCN”) was issued to the noticee in terms of Rule 4 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as the ‘Adjudication Rules’) read with section 15I of SEBI Act, 1992 to show cause, inter alia, as to why an inquiry should not be held and penalty be not imposed under section 15A(a) of SEBI Act, 1992. It was alleged in the SCN that the Noticee failed to discharge her statutory obligation by not complying with the requirement of IO.

Adjudication Order against Varshaben N Trivedi in the matter of Vision Organics Ltd. Page 3 of 7 5. Adjudicating Officer held that the Noticee deliberately refused to accept letters/summons to appear in person and to provide information respectively, and also did not respond to letter dated 02.06.2004 making her liable to penalty under section 15A(a) of SEBI Act, 1992. The Noticee challenged the said order in the Hon’ble Securities Appellate Tribunal (SAT) and vide order dated August 26, 2015 in Appeal no. 190 of 2015 the Hon’ble SAT set aside the order with the following observations : “…. Counsel for SEBI fairly states that in view of the controversy as to whether the notices in respect of the proceedings which are subject matter of the present

Adjudication Order against Varshaben N Trivedi in the matter of Vision Organics Ltd. Page 4 of 7  Noticee has never been actively involved in the management and functioning of VOL. Also my appointment as a Director in the said company was made with malafide intentions by the real perpetrators of the said fraud. She was appointed as director w.e.f 29.06.2002 and her resignation was also filed with Registrar of Companies, Gujarat w.e.f 29.06.2002. Copy of form 32 was submitted to substantiate her contention.

Source: SecMarx — sebi:Order/PM/AA/2018-19/790. 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.