Facts
Three NDTV promoters- Prannoy Roy, Radhika Roy, and RRPR Holdings limited were fined rupees 16.79 crores at an interest of 6% per annum from 2008 by SEBI ( Securities and exchanges board of India) for withholding price-sensitive information from the shareholders this order was passed on 27th November 2020.
Aggrieved by this order, the Appellant approached the Securities Appellate Tribunal (SAT), they did not revoke the order and instead ordered them to pay 50% of the fine in 4 weeks, this judgment was delivered on 4th January 2021. The Appellant then filed a civil appeal in the Supreme Court, challenging the orders of the SAT.
Arguments
Senior counsel Mukul Rohtangi, who was representing the Petitioners, argued that there has been a delay in order as the fines were imposed in 2008 and the order came in 2021.
He also argued that they do not have any other securities or resources to pay the fine, as the news channel they promote is in a precarious state financially. He then asked for more time to argue on the matter.
The Chief Justice SA Bobde, asked the Petitioners to give some securities, without them the court could not guarantee them any further dates on hearing. Mr Rohtangi then offered the shares of the news channels owned by the Petitioners as securities.
Observations
The Supreme Court on Thursday asked Roy about the value of shares of NDTV.
“This morning shares were trading at 37.35 on NSE and 37.25 on BSE. We can provide 50 lakh shares. The total would be around 18 crores. The amount directed to be deposited is 27 crores,” said advocate Fereshte D Sethna of DMD Advocates.
Judgment
The Court has taken note of the agreement to provide the statement of shares that will be used as securities for the deposits ordered by the SAT. The hearing on the matter is still pending and it will continue on the 1st of February 2021.
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