Ashutosh Sharma & Others vs Sebi

2. Sumit Kumar A-8, 3rd Floor, Mangolpuri Stone Market, Mangolpuri Kalan, Police Line, Above Stone Hub & Near Near Punjab Sweets, New Delhi - 110 085. ... Appellants

(Mr. Saurabh Bachhawat with Mr. Deepak Dhane, Mr. Chinmay Paradkar and Mr. Viraai Y. Bhate, Advocates i/b Corporate Pleaders for the Appellant)

AND:

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent 2

(By Mr. Manish Chhangani with Mr. Sumit Yadav, Mr. Abhay Chauhan, Mr. Atul Agrawal, Advocates i/b The Law Point for the Respondent - SEBI)

AND Appeal No. 072 of 2024 [Along with Misc. Application No. 1713 of 2023]

BETWEEN:

1. Ashutosh Sharma 2. Hemanchal Singh 3. Ravindra Singh A-8, 3rd Floor, Mangolpuri Stone Market, Mangolpuri Kalan, Police Line, Above Stone Hub & Near Near Punjab Sweets, New Delhi - 110 085. ..... Appellants

(Mr. Saurabh Bachhawat with Mr. Deepak Dhane, Mr. Chinmay Paradkar and Mr. Viraai Y. Bhate, Advocates i/b Corporate Pleaders for the Appellant)

AND: Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent

(By Mr. Manish Chhangani with Mr. Sumit Yadav, Mr. Abhay Chauhan, Mr. Atul Agrawal, Advocates i/b The Law Point for the Respondent - SEBI)

THESE APPEALS ARE FILED UNDER SECTION 15T OF SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 TO QUASH AND SET ASIDE ORDER DATED NOVEMBER 29, 2022 PASSED BY THE WHOLE TIME MEMBER, SEBI.

THIS APPEAL COMING ON FOR HEARING THIS DAY, THE TRIBUNAL MADE THE FOLLOWING: 3

ORDER

Per: Justice P.S. Dinesh Kumar, Presiding Officer (Oral)

In these two appeals, appellants have challenged order

dated 29.11.2022 passed by the WTM1, SEBI2. Therefore,

they are heard together and disposed of by this common

order.

2. We have heard Shri Saurabh Bachhawat, learned

Advocate for the appellants and Shri Manish Chhangani,

learned Advocate for the SEBI.

3. Learned Advocate for the appellants submitted that the

subject matter of these two appeals is similar to Appeal No.

171 of 2023 (Shri Pushpendra Bhalse vs. SEBI) decided on

08.02.2023 and appellants would be satisfied if a similar order

is passed.

4. Shri Manish Chhangani, learned Advocate for the SEBI

opposed the appeals on the ground of delay. So far as the

submission with regard to the similarity with Appeal No. 171

of 2023, the same is not refuted but it is submitted that the

appellant has not responded to SEBI's demand for production

of details such as the invoices, tax returns and other

documents to show that the monies received was under

various different services.

1 Whole Time Member 2 Securities and Exchange Board of India 4

5. The undisputed facts of the case are, first appellant in

Appeal No. 71 of 2024 is an unregistered investment advisory

company. The second appellant therein, Mr. Sumit Kumar is

the present director. The connected Appeal No. 72 of 2024 is

filed by the erstwhile directors. According to the SEBI,

appellants have a sum of Rs. 6.13 crore in the bank account.

No documents were produced by the appellants to show the

source of income. Shri Manish Chhangani submitted that even

in this appeal appellants have not produced any documents.

6. In Appeal No. 171 of 2023 this Tribunal has upheld the

findings and granted liberty to the appellant therein to

produce the evidence before the SEBI. In our view, since the

appellants are seeking a similar order, we may consider the

same.

7. In the result, while affirming the violations and

directions issued by the SEBI in the impugned order, we remit

the matter to WTM only on the question to decide as to what

is the actual amount that was received by the appellants

towards the investment advisory services. Appellant shall be

at liberty to produce evidence within an outer limit of two

months from today and thereafter the WTM shall pass an

order within an outer limit of three months. 5

8. At this stage Shri Manish Chhangani further submitted

that the appellants have admitted receipt of about Rs. 60 lakh

as monies received from investment advisory services. Since

it is the admitted sum the same may be secured pending

consideration of the appellants case by the WTM. The

submission is fair and accepted. Accordingly, we direct that

the appellants shall place a sum of Rs. 60 lakh in a fixed

deposit in a nationalized bank with a lien marked in favour of

SEBI within a period of four weeks from today.

9. Having considered the appeals on both delay and merits,

the same is disposed of with the aforesaid directions.

Pending interlocutory application(s), if any, stand

disposed of.

No costs.

Justice P.S. Dinesh Kumar Presiding Officer

Ms. Meera Swarup Technical Member

Dr. Dheeraj Bhatnagar Technical Member 26.06.2025 MADHUKAR BHALBAR Digitally signed by MADHUKAR BHALBAR Date: 2025.07.02 13:44:05 +05'30'

msb