SAT Rejects Mallya’s Plea Against SEBI Order

August 11, 2017 19:03
SAT Rejects Mallya’s Plea Against SEBI Order

SAT Rejects Mallya’s Plea Against SEBI Order:- The fugitive liquor baron Vijay Mallya’s appeal against SEBI barring him from the market was rejected by the Securities Appellate Tribunal (SAT) on Friday.

Moreover, SAT asked him to appear before the regulator within three weeks. As per the SEBI order, Mallya has been barred from holding any board position at listed companies, including as the chairman of his group firm United Breweries Ltd (UBL). The SAT has asked Mallya to appear before SEBI “in person or through a legally authorized representative”. This is because so that the regulator can consider his petition for relaxing any restrictions imposed through an interim order passed in January. The order relates to alleged illegal fund diversions at his erstwhile flagship United Spirits Ltd.

“Thereafter, SEBI shall consider the same and proceed further in the matter and pass final orders expeditiously and preferably within a period of four months in accordance with law to give finality to the issue,” the tribunal said in its 25-page order.

The tribunal noted that SEBI is free to relax the restrictions as early as possible and according to the law, if the regulator finds the reply of Mallya appropriate.

Mallya and six former officials of USL from securities markets have been barred from SEBI in January, in a case related to illegal fund diversions. In March 2016, Mallya had resigned as director and chairman of USL.

The tribunal with regard to submission that Mallya be at least allowed to continue as chairman of UBL, said this prayer should be considered by SEBI as per law on receipt of such a representation.

“In case SEBI finds merit in the submission of the Appellant, it would be free to grant partial relief to the Appellant in accordance with law,” the SAT order said.

For many months, Mallya has been evading summons from various investigation agencies and courts. He is currently in the UK.


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