Pravin Gandhi & Ors. vs Sebi

Date of Decision : 21.08.2017

Appeal No. 516 of 2015 1.

Pravin Gandhi 19, Fulchand Nivas, Chowpatty Sea Face, Mumbai - 400 007.

2. Mr. V. Sanjay Kumar 58, 16 Main Road, 4th Block, Koramangala, Bangalore - 560 034.

3. Ms. Geetha Mehra 212, A-Wing, Kalpataru Habitat CHS Ltd., Dr. S.S. Rao Road, Parel, Mumbai - 400 012. ...Appellants

Versus

Securities and Exchange Board of India SEBI Bhavan, Plot No. C-4A, G-Block, Bandra-Kurla Complex, Bandra (East), Mumbai - 400 051. ...Respondent WITH Appeal No. 524 of 2015

1. Pravin Gandhi 19, Fulchand Nivas, Chowpatty Sea Face, Mumbai - 400 007.

2. Mr. V. Sanjay Kumar 58, 16 Main Road, 4th Block, Koramangala, Bangalore - 560 034.

3. Ms. Geetha Mehra 212, A-Wing, Kalpataru Habitat CHS Ltd., Dr. S.S. Rao Road, Parel, Mumbai - 400 012. ...Appellants

Versus

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

Mr. KRCV Seshachalam, Advocate with Mr. Pankaj Uttaradhi, Advocate i/b Visesha Law Services for the Appellant.

Mr. Vikram Nankani, Senior Advocate with Mr. Tomu Francis and Mr. Vivek Shah, Advocate for the Respondent.

CORAM : Justice J.P. Devadhar, Presiding Officer Dr. C.K.G. Nair, Member

Per : J.P. Devadhar (Oral)

1. These two appeals are filed to challenge the order passed by the

Whole Time Member ('WTM' for short) of Securities and Exchange Board

of India ('SEBI' for short) dated November 6, 2015. It is not in dispute that

the issues raised in these appeals are covered by the judgment of this

Tribunal in case of Osian's-Connoisseurs of Art Private Limited vs.

Securities and Exchange Board of India & Anr. (Appeal No. 62 of 2013

decided on October 13, 2015). For the reasons stated in our order in Appeal

No. 62 of 2013 decided on October 13, 2015 the present appeals are

disposed of in terms set out therein.

2. In para 29(e) of the impugned order dated November 6, 2015 it is

held that in the event of failure to comply with the directions set out in that

order, SEBI would be entitled to make a reference to the State Government /

Local Police to register a civil / criminal case against Yatra Art Fund, its

promoters, directors and its managers / persons in-charge of the business

and its schemes, for offences of fraud, cheating, criminal breach of trust and

misappropriation of public funds.

3. Counsel for SEBI fairly agrees that the impugned order does not

record any reasons as to the basis on which the appellant is held guilty of 3

committing of fraud, cheating, criminal breach of trust and misappropriation

of public funds.

4. In these circumstances, in para 29(e) of the impugned order the

words 'fraud, cheating, criminal breach of trust and misappropriation of

public funds' cannot be sustained and accordingly these words are quashed

and set aside from the impugned order.

5. Appeals are disposed of in the aforesaid terms with no order as to

costs.

Sd/-

Justice J.P. Devadhar Presiding Officer

Sd/-

Dr. C.K.G. Nair Member

21.08.2017 Prepared and compared by:

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