sebi:Order/VV/NK/2022-23/16231-16242
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Facts / Headnote
No violation found; Show Cause Notice dropped against all 12 Noticees
Provisions invoked
- s. 15A
- s. 15
- s. 15T
- s. 15J
- s. 15F
- s. 7(1)
Regulations
- Reg. 7
- Reg. 7(1)
- Reg. 199
- Reg. 2(1)(e)
- Reg. 7(2)
- Reg. 35
- Reg. 2(1)(e)(2)
- Reg. 2(1)(e)(1)
Holding
The Adjudicating Officer held that no violation of Regulation 7(1) read with Regulation 7(2) of SAST Regulations, 1997 was committed by the Noticees, as the Noticees could not be treated as Persons Acting in Concert (PACs) as on February 27, 2009.
Full text
Adjudication Order in respect of 12 entities in the matter of M/s Era Infra Engineering Limited Page 2 of 23 in the matter of Era Infra Engineering Limited Page 2 of 14 Engineering Limited (hereinafter referred to as "EIEL / Company") for the period January 1, 2008 to April 30, 2009. It revealed that Alok Electricals Pvt. Ltd., Antique Texfab Pvt. Ltd., Balaji Texfab Pvt. Ltd., Coronation Builders & Engineers Pvt. Ltd., Durga Fabricators and Engg Pvt. Ltd., Florid Infrastructure Pvt. Ltd., Mahima Developers & Builders Ltd., Olive Vinimay Pvt. Ltd., Pensive Agencies Pvt. Ltd., Salasar Texfab Pvt. Ltd., Tanvi Fincap Pvt. Ltd. and Vibhut Builders & Engg Pvt. Ltd. (hereinafter individually referred to as “Noticee no. 1, 2, 3 & so on and collectively as "Noticees") are inter-connected on the basis of common address, common directorship and common contact numbers. All the Noticees are part of the members of Kiran Group who were disclosed as „Persons Acting in Concert‟ (PACs) to stock exchanges in terms of Regulation 7(1) of Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeover) Regulations,1997 (hereinafter referred to as "SAST Regulations, 1997").
Adjudication Order in respect of 12 entities in the matter of M/s Era Infra Engineering Limited Page 3 of 23 2015 (hereinafter be referred to as “Then Adjudication Order/AO order”) against Noticees wherein, a penalty of Rs. 1,00,00,000/- (Rupees One Crore only) under Section 15A(b) for violation of regulation 7(1) read with regulation 7(2) of SAST Regulations, 1997; read with Regulation 35 of SAST Regulations, 2011 by following the judgment of the Apex Court in the case of SEBI vs. Roofit Industries Limited reported in (2016) 12 SCC 125 was imposed on the Noticees. Aggrieved by the said Adjudication Order, the Noticees filed an Appeal No. 77 of 2016 before the Hon’ble Securities Appellate Tribunal (hereinafter be referred to as, the “Hon’ble SAT”).
Adjudication Order in respect of 12 entities in the matter of M/s Era Infra Engineering Limited Page 4 of 23 “SEBI Act”) and Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties by Adjudicating Officer) Rules, 1995 (hereinafter referred to as “Rules”) to enquire into and adjudge under section 15A(b) of the SEBI Act 1992 for the alleged violations.
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Source: SecMarx — sebi:Order/VV/NK/2022-23/16231-16242. 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.