SAT rejects Mallya plea against Sebi rulings on board position
The Securities Appellate Tribunal (SAT) on Friday rejected tycoon Vijay Mallya’s appeal against the Securities and Exchange Board of India’s (Sebi) order barring him from holding any board position in a listed company.
The tribunal also upheld the regulator’s order of barring him and six others from the securities market for alleged violation of listing norms and diversion of funds. It dismissed all the appeals against Sebi, saying that given the gravity of the matter, the markets regulator was justified in invoking its extraordinary power of passing an ex parte (without first hearing Mallya) order.
“In view of the facts and circumstances and analysis of law and with above observations, we are inclined to dismiss the appeal with a direction to the appellant to appear before Sebi, in person or through a legally authorised representative, and make his submissions within 21 days,” SAT said.
On Mallya’s plea regarding the board position: “This prayer of the appellant should be considered by Sebi as per law, if so advised, and in case Sebi finds merit in the submission, it would be free to grant partial relief."
Sebi had passed its order based on a prima facie view. Instead of rushing to appeal; Mallya should have defended himself before the regulator, availing of the opportunity given to him, said SAT.
The tribunal also dismissed the appeal of four other former United Spirits (USL) officials who were also barred from accessing the capital markets and holding key managerial positions.
Six other officers of USL also barred from the capital markets via the interim order by Sebi on January 25, in the matter of USL, had filed a separate appeal.