sebi:WTM/GM/EFD/74/2018-19
Facts / Headnote
Partial modification of SEBI order dated September 10, 2015; disgorgement amounts recomputed and 14-year restraint imposed on all four noticees with credit for prior restraint periods
Provisions invoked
- s. 11
- s. 19
- s. 12A
Regulations relied on
- SEBI (PFUTP) Regulations, 2003
- SEBI (PIT) Regulations, 1992
Parties
- B. Ramalinga Raju
- B. Rama Raju
- B. Suryanarayana Raju
- SRSR Holdings Pvt. Ltd.
Holding
The WTM directed B. Ramalinga Raju, B. Rama Raju, B. Suryanarayana Raju and SRSR Holdings Pvt. Ltd. to disgorge illegal gains totalling Rs. 813,40,69,658 within 45 days, and restrained all four from accessing the securities market for 14 years, giving credit for periods of restraint already served.
Full text
Order in the matter of SCSL Page 2 of 25 spouses), by way of pledge of SCSL shares were also included as illegal gain made by Ramalinga Raju and Rama Raju.
Order in the matter of SCSL Page 3 of 25 ....... 66. Considering the above facts, it is hereby clarified that pursuant to the SEBI
Order in the matter of SCSL Page 4 of 25 that the illegal gain made by the connected entities were liable to be disgorged by the respective member of the connected entity group, jointly and severally with Ramalinga Raju and Rama Raju. Thus, in relation to the illegal gain made by the connected entities, the WTM has passed two different orders which are mutually contradictory. ... d) Very fact that the WTM by his order dated 10.09.2015 has held that the illegal gain made by the connected entities are liable to be disgorged by individual member of the connected entity group jointly and severally with Ramalinga Raju and Rama Raju clearly shows that the WTM did not agree with his own decision contained in the impugned order dated 15.07.2014. In such a case, WTM ought to have recorded reasons as to why the order dated 15.07.2014 was erroneous and the reason as to why he is taking a contrary view in his order dated 10.09.2015. ... ... f) ... In the present case, the WTM was required to consider the question, as to who had made illegal gain on sale/transfer of Satyam shares by the connected entities while in possession of UPSI and accordingly direct that person/ entity to disgorge the illegal gain. By the impugned order dated 15.07.2014 the WTM without assigning any reason held that the said illegal gain was made by Ramalinga Raju and Rama Raju and accordingly directed them to disgorge the illegal gain jointly and severally. In the subsequent order dated 10.09.2015 the WTM has held
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Source: SecMarx — sebi:WTM/GM/EFD/74/2018-19. 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.