sebi:Order/SKV/AJ/30197-30200
Facts / Headnote
Violations established against all four noticees; monetary penalties imposed under Section 15HB of the SEBI Act, 1992
Provisions invoked
- s. 15
- s. 15H
- s. 27
- s. 15J
- s. 133
- s. 134
- s. 129(1)
- s. 134(1)
- s. 158
Regulations relied on
- SEBI (LODR) Regulations, 2015
Parties
- Kaarya Facilities & Services Ltd. (Noticee 1)
- Vishal Panchal, Promoter and CMD (Noticee 2)
- Vineet Pandey, Promoter and Joint Managing Director (Noticee 3)
- Jitendra Adhyaru, Chief Financial Officer (Noticee 4)
Holding
The Adjudicating Officer held that Noticee 1 (Kaarya Facilities & Services Ltd.) violated multiple provisions of the LODR Regulations, 2015 for publishing misrepresented/misstated financial statements for FY 2018-19, and that Noticees 2, 3 and 4 were liable for their respective roles in the violations. Penalties were imposed: INR 1,00,000 on Noticee 2, INR 1,00,000 on Noticee 3, and INR 2,00,000 on Noticee 4 (with Noticee 1 also penalized under Section 15HB).
Full text
Adjudication Order in respect of 4 entities in the matter of Kaarya Facilities & Services Ltd. Page 2 of 60 misrepresentations/ misstatements in the financial statement of Noticee 1. If so, whether the same were in violation, of the Securities and Exchange Board of India Act, 1992 (hereinafter referred to as “SEBI Act”) read with the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”) and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (hereinafter referred to as “LODR Regulations/LODR Reg. 2015”). The investigation period (hereinafter referred to as “Investigation period” or “IP”) was taken as FY 2018-19.
Adjudication Order in respect of 4 entities in the matter of Kaarya Facilities & Services Ltd. Page 3 of 60 APPOINTMENT OF ADJUDICATING OFFICER
Adjudication Order in respect of 4 entities in the matter of Kaarya Facilities & Services Ltd. Page 4 of 60 6.4 That Noticee 4, being CFO of Noticee 1, was at the helm of the financial decisions of Noticee 1, it was therefore his responsibility to prevent the accounting irregularities in the company and to present a “True and Fair” picture of the affairs of company. Accordingly, the violations alleged to be committed by Noticee 1 were attributable to the Noticee 4. In view of the same, Noticee 4 has violated Regulation 4(1)(a), (b) & (c),4(2)(e), 33(1) (a) & (c), 34(3),48, 53(1) and 71(3) of LODR Regulations r/w Section 27 of SEBI Act, 1992.
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