Mr. Sanjay Madanlal Sanghvi & Another vs Sebi

Shop No. 2, Godrej Avanti, Near Seven Loves Chowk, Pune - 411042. .... Appellants

By Mr. Pulkit Sharma, Advocate i/b Mindspright Legal for the Appellants.

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. Akash Rebello, Advocate with Ms. Nidhi Singh, Mr. Nishin Shrikhande, Ms. Komal Shah, Advocates i/b Vidhii Partners for the Respondent. 2

THIS APPEAL IS FILED UNDER SECTION 15T OF SEBI ACT, 1992 TO SET ASIDE ORDER DATED AUGUST 31, 2020 (EX- A) PASSED BY WTM, SEBI.

With Appeal No. 399 of 2024 And Misc. Application No. 732 of 2024 And Misc. Application No. 890 of 2024

Between

1. Sanjay Madanlal Sanghvi 2. Sanjay Madanlal Sanghvi HUF

Shop No. 2, Godrej Avanti, Near Seven Loves Chowk, Pune - 411042. .... Appellants

By Mr. Pulkit Sharma, Advocate i/b Mindspright Legal for the Appellants.

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. Akash Rebello, Advocate with Ms. Nidhi Singh, Mr. Nishin Shrikhande, Ms. Komal Shah, Advocates i/b Vidhii Partners for the Respondent. 3

THIS APPEAL IS FILED UNDER SECTION 15T OF SEBI ACT, 1992 TO SET ASIDE ORDER DATED JUNE 30, 2022 (EX-A) PASSED BY AO, SEBI.

THESE APPEALS COMING ON FOR HEARING THIS 8TH DAY OF MAY 2025, THIS TRIBUNAL PASSED THE FOLLOWING:

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

Appellants in these two appeals are common. Therefore, these appeals are

heard simultaneously and disposed of by this common order. There is delay of

1331 days in filing Appeal No. 398 of 2024 and 666 days delay in filing

Appeal No. 399 of 2024.

2. We have heard Mr. Pulkit Sharma, learned advocate for the appellants

and Mr. Akash Rebello, learned advocate with Ms. Nidhi Singh, Mr. Nishin

Shrikhande, Ms. Komal Shah, learned advocate for the respondent.

3. At the outset, learned advocate for the SEBI submitted that two reasons

shown for delay filing these appeals. Firstly that the appellants had

accepted the order passed by the WTM as it was only 'warning' order.

Secondly the AO had imposed a penalty was only Rs. 25,000/-. Later,

Appellants learned about the criminal prosecution launched against them 4

and approached this Tribunal.

4. Opposing the application for condonation of delay, he submitted that

standard of proof that is required in proceedings before the SEBI is

preponderance of probabilities whereas the standard of proof as required

before the criminal court is beyond reasonable doubt. Therefore,

proceedings before the criminal court and SEBI are independent

proceedings.

5. Learned Advocate for the appellants submits that it is no doubt true

that appellants have accepted the orders passed by both the WTM and AO

for the aforementioned reasons. The appellants' apprehension is that not

challenging the orders passed by the WTM and AO should not be construed

as appellants as having accepting the findings recorded in those orders.

Therefore, the appellants have now challenged the orders.

6. We see some force in the argument of learned advocate for the SEBI

that the prayer to condone the delay, once the appellants have accepted the

orders is untenable. He is also right in his submissions that the standard of

proof required in proceedings before the SEBI is only preponderance of

probabilities and standard of proof required in criminal court is beyond the

reasonable doubt. Hence, no ground reason to condone the delay. Further,

the criminal court will have to examine matter independently and the 5

standard of proof required is beyond reasonable doubt.

7. In the circumstances, applications for condonation of delay are

dismissed. Consequently, appeals stand dismissed. As prayed for by the

learned advocate for the appellants, we make it clear that the rights and

contentions of the of the parties before the criminal court are kept open.

Justice P. S. Dinesh Kumar Presiding Officer

Ms. Meera Swarup Technical Member

08.05.2025 MRS Digitally signed by MRS PRAMILA PRAMILA Date: 2025.05.09 16:33:25 +05'30'

YASH