The Securities Appellate Tribunal (SAT) on Monday quashed an order, passed by markets regulator Sebi, asking Prabhat Dairy to deposit over Rs 1,292 crore, and also directed the regulator to process the delisting application of the firm and pass appropriate orders within six weeks. "The direction of the WTM to deposit a sum of Rs 1,292.46 crore is wholly arbitrary and has been passed without any application of mind," the tribunal said. WTM refers to whole-time member of Sebi.
In October, Sebi had directed Prabhat Dairy to cooperate with the forensic auditor and deposit over Rs 1,292 crore in a nationalized bank. Sebi had appointed Grant Thornton Bharat LLP as the forensic auditor in July to ascertain facts and circumstances in relation to financials of the firm with respect to its financial statements for the financial years ending March 31, 2019, and March 31, 2020.
In January 2019, Prabhat Dairy told Stock Exchanges that its board has approved the sale of the firm's shareholding in its wholly-owned step-down subsidiary Sunfresh Agro Industries Pvt Ltd to Tirumala Milk Products Pvt Ltd for a total consideration of nearly Rs 1,227 crore. It also approved the sale and transfer of its dairy product business for about Rs 473 crore.
Sebi asks stock exchanges to resolve investor complaints within 15 days
Gland Pharma Gets Sebi nod to Float IPO
RIL-Future deal on crisis, Amazon seeks help from SEBI