SAT asks former Fortis promoter Malvinder Singh to deposit 50% of SEBI's penalty amount in 6 week's
SAT) has ordered former Fortis promoter Malvinder Mohan Singh to deposit 50 per cent of the penalty amount withing six weeks. The order came in a plea filed by him before the appellate tribunal
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10:36 PM IST
The Securities Appellate Tribunal (SAT) has ordered former Fortis promoter Malvinder Mohan Singh to deposit 50 per cent of the penalty amount withing six weeks. The order came in a plea filed by him before the appellate tribunal. The appellate tribunal said that if Singh deposits the amount then the market regulator SEBI (Scurities and Exchange Board of india) will not collect the remaining amount till the SEBI case is not heard in its entirety.
On 19 April, SEBI had slapped a penalty of Rs 5 cr on Singh. It had also imposed a penalty of Rs 2.5 cr Malav Holding, a company owned by him. On Monday, SAT gave an interim order on the SEBI penalty and said that Singh must deposit 50 per cent amont within six weeks. The amount must be eposited in a separate account.
Singh's lawer in his arguments before the SAT had said that SEBI had not given a break-up of the penalty amount. The lawyer further said that the penalty amount could not be more than rs 1 cr as per Section 15HB of Sebi Act and hence the penalty amount is in excess.
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The appelllate tribunal has also asked another accused Gagandeep Singh Bedi in the same case to deposit Rs 25 lakh. Sebi had imposed a penalty of Rs 2.5 cr on Bedi as well.
Bedi was the Chief Financial Officer of Fortis Healthcare between 2014 and 2018. He said that SEBI's allegation of financial irregularities via inter-corpoarte deposits and sending them outside has been there since 2011. They were being rolled-over.
Bedi's side argued that as the CFO, he had objected to this in 2016.
Meanwhile, SEBI had said that there were lapses in Bedi's role as CFO and was only following promoters' instructions.
SAT has also directed SEBI to file its reply on this in 6 months.
The matter will come up for hearing on 1 August.
SEBI had also impose restiction on Singh and his brother Shivinder Singh for 3 years in relation to market related activities.
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