Mr. Sunder Lal Dugar

SAT-appeal

• Misstatement/non-disclosure of material information in the offer document, diversion of IPO proceeds to a group company, and circuitous routing of funds to trading clients; also improper chairing of the Audit Committee.
  Appeals Nos. 404, 403, 402 and 432 of 2014 were disposed of by the common SAT decision. · Aggregate penalty of Rs. 3 crore imposed jointly and severally under sections 15HA and 15HB was considered in the appeals.
  Appeal: SAT Appeals Nos. 404, 403, 402 and 432 of 2014 decided on 26 July 2016; appeals challenged the AO order dated 6 August 2014.
• Failure to disclose material information in the offer document and misuse/routing of IPO proceeds through a loan to RDB Realty & Infrastructure Ltd., allegedly violating ICDR and PFUTP requirements; Baid separately breached Clause 49 by chairing the Audit Committee.
  Appeals against the AO's common order dated 06.08.2014 were disposed of. · Joint and several aggregate penalty of Rs. 3 crore under Sections 15HA and 15HB was upheld.
  Appeal: Appeal Nos. 404, 403, 402 and 432 of 2014 decided by SAT on 26 July 2016; related appeals against the WTM order dated 19.12.2014 were stated to be heard along with these appeals.
• Suppression of material facts from investors in the IPO and misuse of IPO proceeds, violating the ICDR and PFUTP Regulations.
  Appeals Nos. 514, 532, 533 and 534 of 2015 dismissed as infructuous. · WTM finding of violations of the ICDR and PFUTP Regulations upheld.
  Appeal: Appeal Nos. 514, 532, 533 and 534 of 2015 dismissed as infructuous on 26 July 2016; common WTM order dated 19 December 2014 otherwise upheld.
• SAT matter SATV-3805850AC227E1A615ADE70D
  No stay granted on SAT order dated 26.07.2016 in Appeal Nos. 404,403,402 & 432 of 2014 · If Supreme Court allows appeals, no penalty recovery; if dismissed, SEBI entitled to recover penalty with 12% interest from 06.08.2014
  Appeal: Misc. Application No. 170 of 2016 in Appeal Nos. 404,403,402 & 432 of 2014 disposed on 18.08.2016; appeals against SAT order dated 26.07.2016 stated to be pending before Supreme Court (numbers not stated)
• Suppressing material facts from investors in IPO violating ICDR Regulations and misutilizing IPO proceeds violating PFUTP Regulations
  Upheld WTM finding that appellants violated ICDR and PFUTP Regulations per Appeal No.404/2014 · Declined to decide validity of two additional charges as debarment already undergone
  Appeal: Appeal Nos.514, 532, 533, 534 of 2015 dismissed as infructuous on 26.07.2016; related Appeal No.404 of 2014 decided 26.07.2016
• SAT matter SATV-462688DF1B8C93D4C7DD8C07
  Stay of the SAT order dated 26 July 2016 was refused. · SEBI may recover the penalties with 12% per annum interest if the Apex Court appeals are dismissed.
  Appeal: Applicants stated that appeals against the SAT decision dated 26 July 2016 had been filed before the Apex Court and were pending; no appeal numbers or disposal details stated.
• Suppressing material facts from investors in IPO violating ICDR Regulations and misutilising IPO proceeds violating PFUTP Regulations.
  Upheld WTM finding that appellants violated ICDR and PFUTP Regulations for reasons in Appeal No. 404 of 2014 · Disposed of Appeal Nos. 514, 532, 533, 534 of 2015 as infructuous as 4-year debarment already undergone
  Appeal: Appeal Nos. 514, 532, 533, 534 of 2015 (reserved 14.07.2016) dismissed as infructuous on 26.07.2016; companion Appeal No. 404 of 2014 decided 26.07.2016
• Suppressing material facts from investors in IPO violating ICDR Regulations and misutilizing IPO proceeds violating PFUTP Regulations.
  Upheld WTM finding that appellants violated ICDR and PFUTP Regulations · Dismissed Appeal Nos. 514, 532, 533, 534 of 2015 as infructuous as 4-year debarment already undergone
  Appeal: Appeal Nos. 514, 532, 533 and 534 of 2015 disposed on 26.07.2016 as dismissed as infructuous
• SAT matter SATV-84158BF413CA3912243FAA40
  No stay granted on SAT order dated 26.07.2016 in Appeal Nos. 404, 403, 402 & 432 of 2014 · SEBI entitled to recover penalty with interest at 12% per annum from AO order date 06.08.2014 if not paid in time
  Appeal: Appellants stated to have filed appeals before Apex Court (Supreme Court) against SAT order dated 26.07.2016 and pending; SAT declined stay on 18.08.2016
• Non-disclosure of 12.09.2011 resolution to lend up to Rs 50 cr to RDBRIL in offer document and diversion of Rs 31.60 cr IPO proceeds to group company and to fund trading clients losses.
  Joint and several penalty aggregating Rs 3 crore under Section 15HA and 15HB SEBI Act for ICDR and PFUTP violations · Additional penalty of Rs 5 lakh on Sandeep Baid under Section 23H SCRA for Clause 49 violation
  Appeal: Appeal Nos. 404, 403, 402 and 432 of 2014 against AO order 06.08.2014, reserved 14.07.2016, decided 26.07.2016; companion Appeals 514 of 2015 and 532,533,534 of 2015 heard together
• Non-disclosure in offer document of 12.09.2011 resolution to lend up to Rs 50 cr to RDBRIL and diversion of Rs 31.6 cr IPO proceeds as loan to group company, alleged circuitous routing to fund first-day traders' losses; audit committee chaired by Whole Time Director.
  SAT upheld Rs 5 lakh penalty on Sandeep Baid for chairing 07.10.2011 Audit Committee in violation of Clause 49 as not unreasonable or excessive
  Appeal: Appeal Nos. 404, 403, 402 & 432 of 2014 against AO order 06.08.2014; reserved 14.07.2016, decided 26.07.2016; related Appeals 514/2015, 532-534/2015 vs WTM order 19.12.2014 heard together
• SAT matter SATV-F09606C3940D8D7D9BF40D44
  No stay granted on SAT order dated 26.07.2016 in Appeal Nos. 404,403,402 & 432 of 2014 · Appellants to pay penalty set out in 26.07.2016 order within four weeks from 26.07.2016
  Appeal: Appeals filed by appellants before Apex Court against SAT order dated 26.07.2016 pending; Misc. Application No. 170 of 2016 seeking 3-week stay disposed on 18.08.2016