Tribunal Refuses To Intervene In SEBI Prosecution Of Former Independent Directors

The Securities Appellate Tribunal (SAT) has dismissed appeals filed by three former Independent Directors of Bhartiya Global Infomedia, ruling that a SEBI order that has attained finality cannot be reopened through fresh appeals. The tribunal also held that it has no jurisdiction to interfere with criminal proceedings pending before a SEBI Special Court.

The appeals were filed by former Independent Directors Harjeet Singh Anand, Arti Bhatia and Sanjay Kapoor against SEBI’s April 25, 2014, order imposing a penalty of Rs 6 crore on the company and other noticees over alleged irregularities in its 2011 initial public offering (IPO). The appellants argued that they had no role in the company’s day-to-day operations and sought removal from the pending criminal prosecution. However, SAT agreed with SEBI that the order had already been upheld by the tribunal and the Supreme Court, making it final. While dismissing the appeals, SAT said the appellants remain free to pursue any remedy available before the appropriate legal forum.