Zenith Steel Pipes and Industries Limited (earlier Zenith Birla India Ltd)

2 matters before the Securities Appellate Tribunal

Penalties and directions recorded

Reduction of penalty to Rs 25 lakh in para 19 needs no reconsideration
WTM: Company restrained from securities market for 3 years; Chairman and Managing Director for 1 year each
AO: Rs.10 crore penalty on Company and Rs.10 lakh each on Chairman and Managing Director

Alleged misappropriation/diversion of GDR proceeds via loan to Vintage - USD 14.55 million defaulted out of USD 22.99 million, partly adjusted by Euram Bank.
Review Application No. 19 of 2023 dismissed - no error in SAT order dated 21.02.2023 · Finding in para 18 that GDR money received and not misappropriated needs no correction
Appeal: Review Application No. 19 of 2023 with Misc. Application 500 of 2023 (delay) in Appeal No. 554 of 2021 and Appeal No. 634 of 2022 - dismissed on 28.04.2023; recall sought of SAT order dated 21.02.2023
Fraudulent GDR issue of USD 22.99 million subscribed solely by Vintage FZE via Euram Bank loan secured by pledge of GDR proceeds, with misleading successful-closure disclosure.
WTM: Company restrained from securities market for 3 years; Chairman and Managing Director for 1 year each · AO: Rs.10 crore penalty on Company and Rs.10 lakh each on Chairman and Managing Director
Appeal: Appeal Nos. 554, 555, 657 of 2021 and 373, 633, 634, 635 of 2022 with Misc. Application 929/2022; reserved 03.01.2023, decided 21.02.2023 together

Source: SecMarx — Zenith Steel Pipes and Industries Limited (earlier Zenith Birla India Ltd). AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (charges, outcomes, appeal chain) is cited to us.