Hear appeals of NDTV promoters without insisting on deposit of Sebi's fine, SC tells SAT

NDTV promoters challenged the SAT order directing them to deposit 50 per cent of the alleged unlawful gains they reportedly made with Sebi

The Supreme Court on Monday granted relief to NDTV promoters Prannoy Roy and Radhika Roy, by directing SEBI appellate tribunal not to insist for 50 % deposit to hear their appeal against fine imposed for alleged insider trading.

A bench of Chief Justice S A Bobde and Justices A S Bopanna and V Ramasubramanian said the appeal by the Roy's should be heard on merits on March 6 and the non-deposit should not lead to recovery proceedings against them.

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"Appeals are to be heard on March 4. No amount shall be recovered coercively in absence of any deposit for hearing the appeals. The order shall not be treated as precedent," said the bench which also comprised Justices A S Bopanna and V Ramasubramanian.

In the proceedings conducted through video conferencing, the bench was informed by Solicitor General Tushar Mehta that the deposit of money is a condition precedent for grant of stay on the direction of Sebi.

Senior advocate Mukul Rohatgi, appearing for the petitioners, contended if there was no stay, their properties will be attached.

"I am not saying it's pre-deposit (condition). They will attach my house," said senior advocate Mukul Rohatgi, appearing for the promoters.

The court directed that no amount should be coercively recovered from the appellants for hearing the case. The bench clarified that the order will not be treated as a precedent.
During the hearing, Solicitor General Tushar Mehta opposed the plea, saying that many other similar petitions were pending and every one would seek similar relief.

To this, the bench said, "This order should not be treated as a precedent."

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"No amount shall be coercively recovered from the appellant for hearing the case. This order shall not be a precedent," the bench said.

Earlier, the Roys questioned the penalty imposed by market regulator SEBI, saying they were running a struggling news channel, having no resources. They also said they were willing to give an undertaking that they would not transfer their entire shareholding in NDTV without leave of the SEBI's appellate tribunal.

While hearing their appeal against Sebi, SAT had further said that if NDTV were to deposit the amount, the balance would not be recovered during the pendency of the appeal before it.

In two separate orders passed on January 4, the tribunal had noted that the appeals filed by the Roy couple needed consideration and directed the appeals to be listed before the tribunal for final disposal on February 10, 2021.

The Securities and Exchange Board of India (SEBI) had imposed a penalty of Rs 27 crore on the petitioners for failing to disclose price-sensitive information to the shareholders of NDTV.

The Securities Appellate Tribunal had subsequently directed them to deposit 50% of the unlawful gains which the SEBI found to have been made by them for alleged insider trading.

(With inputs from PTI)