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The Economic Times

SAT rejects Gautam Thapar's appeal against Sebi order

MUMBAI: The Securities Appellate Tribunal (SAT) on Tuesday rejected an appeal filed by CG Power’s ex- chairman Gautam Thapar, its former directors and Avantha Holdings against an order by market regulator Sebi barring them from accessing the securities market alleging fraudulent transfer of funds from the company.

"..we are of the opinion that the contention of the appellants (Gautam Thapar and others) that no case was made out for grant of an ad-interim ex-parte order is misconceived and cannot be accepted," SAT said in its order posted on the website.

“We therefore, find no merit in the appeal and is dismissed.." SAT said.

It has directed Thapar and others to approach the Securities and Exchange Board of India(Sebi) to obtain all the documents they would require to defend their case.

Last month, Sebi in an interim order had also restrained them from being associated with any market intermediary or listed companies. Aggrieved by Sebi’s order they moved SAT.

The regulator had said an examination of the preliminary investigation report and audit report prima facie indicate misstatement of accounts and diversion of funds from a listed company and its subsidiaries, thus violating Sebi’s PFUTP (Prohibition of Fraudulent and Unfair Trade Practices) and listing and disclosure norms.

" is noted that the funds diverted from CG Power were fraudulently transferred to its promoter company i.e. Avantha Holdings and entities related or connected with the company, viz. Avantha International, Acton, Ballarpur International, Mirabelle and Solaris, without the knowledge of the company and without any approval from its board," Sebi had said in its order.

The tribunal has directed Sebi to pass a confirmatory order within a period of four weeks from the date when the hearing is concluded.
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