Tuesday, June 15, 2021
Home Media SAT upholds SEBI penalty of ₹2.10 crore on NDTV, ₹3 lakhs each on 3...

SAT upholds SEBI penalty of ₹2.10 crore on NDTV, ₹3 lakhs each on 3 directors for not disclosing tax demand on time

The order states that the Directors cannot escape their liability of the penalty imposed, because the decision to not disclose the tax demand was a conscious decision taken by the company

The Securities Appellate Tribunal (SAT) has upheld two orders of SEBI imposing a penalty of ₹2 crore on NDTV and ₹20 lakh on the company and the directors of the company. The market regulator had imposed the fines for failing to furnish information on time and failing to comply with listing conditions.

In 2015, the Securities and Exchange Board of India (SEBI) had imposed a fine of ₹2 crore on New Delhi Television for late disclosure of the fact that the company had received a tax demand of ₹450 crore from the income tax department. I-T department had raised the demand after assessing the income of NDTV for the assessment at ₹833.33 for the assessment year 2009-10, against the loss of ₹64.83 declared by the company in its return.

NDTV had received the tax demand in February 2014, but it didn’t inform the stock exchange about the same, thereby violating listing norms of exchange. The Exchanges came to know about the fact three months later, only after the company disclosed it in its annual report. Therefore, SEBI had imposed a fine of ₹2 crore on the company in 2015, as listed companies are required to disclose any “material event” immediately. Of this, ₹25 lakh was imposed for failing to furnish information on time, and ₹1.75 crore fine was imposed for failing to comply with listing conditions

In 2018, SEBI had imposed an additional penalty of ₹10 on NDTV, ₹3 lakhs each of the 3 directors, and ₹3 lakh on the compliance officer Anoop Singh Juneja. Juneja was fined ₹2 lakh for violation of listing norms, and ₹1 lakh for violation disclosure practices. This additional fine on NDTV was imposed under the prevention of insider trading guidelines, while the directors were fined for violating the listing agreement. The three directors fined by SEBI are Prannoy Roy, Radhika Roy and Vikramaditya Chandra. NDTV had filed an appeal with the SAT against the SEBI order in 2018.

The SAT found that NDTV indeed violated clause 36 of the listing agreement by not disclosing the tax demand immediately. The Tribunal ruled that ‘material events’ have to be reported immediately as they have ‘material impact’. Justifying the penalty of ₹25 lakhs for non-disclosure, the SAT said that the AO could have even imposed a penalty of ₹1 crore, as it is a serious violation. The order also said that the ₹1.75 crore penalty for violating listing norms is justified. The SAT order states, “In our opinion, considering the material event which was not disclosed we are of the opinion, that the penalty imposed is just and proper in the circumstances of the case”.

SAT also upheld the additional penalty imposed on NDTV and the personal penalty imposed on three directors in 2018. The order states that the Directors cannot escape their liability of the penalty imposed, because the decision to not disclose the tax demand was a conscious decision taken by the company.

But the SAT said that imposition of the penalty of ₹2 lakh on compliance officer Anoop Singh Juneja was unjustified. The order states that the officer works under the direction of the board of directors, and the officer is not responsible for complying with the listing agreement. But the officer is liable for Corporate Disclosure Practices, and therefore the penalty of ₹1 lakh was upheld.

The full SAT order can be seen below.

[googleapps domain=”drive” dir=”file/d/1VkWmS1_U4sfQ9BvN31IqTujvPN7azV8U/preview” query=”” width=”640″ height=”480″ /]

  Support Us  

Whether NDTV or 'The Wire', they never have to worry about funds. In name of saving democracy, they get money from various sources. We need your support to fight them. Please contribute whatever you can afford

OpIndia Staffhttps://www.opindia.com
Staff reporter at OpIndia

Related Articles

Trending now

Government debunks propaganda article published in The Hindu on the surge in FDI inflows for 2020-21: Details

GoI has debunked the propaganda article published in The Hindu on 2 June 2021 over the surge in FDI inflows

British Pakistani rapper Frenzo Harami spews venom on Hindus. Here is what we know about him

Pakistan-born British rapper, who used to sell drugs before becoming a rapper, spoke the language of terrorists, used Gaumutra jibe

Rahul Gandhi shares fake news related to Lord Ram, twice in two days. This is what it shows

What made Rahul Gandhi share a fake news about 'Jai Shri Ram' chant even though Police had debunked the claims?

Big Liberals, small hearts: By donating 80 vials of vaccine, America has proved to be the poorest country in the world

Do you remember when Western media and their native sepoys flew drones over cremation grounds in India? They are quiet now

Sultan Ansari, from whom Ram Janmabhoomi Teerth Kshetra bought land rubbishes claims of ‘scam’, says he supports Trust: Read details

Putting all the allegations of a ‘land scam’ by the Shri Ram Janmbhoomi Teerth Kshetra Trust to rest, Sultan Ansari rubbished the claims

‘Even North Korea is not this crazy’: Defector rails against woke US universities for encouraging cancel culture and intolerance to dissent

A 27-year-old defector said she found little difference between the repressive culture in North Korea and the American woke culture

Recently Popular

Here is the truth about the land deal by Ram Janmabhoomi Teerth Kshetra and how the allegations by likes of AAP are baseless

Shri Ram Janmabhoomi Teerth Kshetra and its head Champat Rai bought an additional piece of land for the purposes of additional construction to facilitate pilgrims who would be travelling to Ayodhya

Kamal R Khan calls Mika Singh ‘anpadh gawar sooar’ after the singer released a diss track titled ‘KRK Kutta’: Here is how the feud...

The feud between KRK and Mika Singh descends to calling each other ‘dogs’ and ‘pigs’, here how it unfolded

Nikhil Kamath disregarded Viswanathan Anand’s request to not use his name in public communication after cheating, says grandmaster’s wife

Zerodha co-founder Nikhil Kamath recently apologised for using unfair means to defeat Chess grandmaster Vishwanathan Anand

Young billionaire Nikhil Kamath’s account closed by Chess.com as he admits cheating in charity game to defeat Vishwanathan Anand

Nikhil Kamath created quite the flutter recently after he apparently defeated Vishwanathan Anand in a game of chess.

Rohingyas settled all over UP with forged Aadhaar, voter IDs, fresh arrests reveal they are getting financial aid too: Report

ADG informed that the Rohingyas have settled in every assembly constituency with forged voter ID cards.

60-year-old woman gang-raped in front of her grandson: More horror stories emerge from Bengal as women speak up in SC

Women in West Bengal have moved the Supreme Court narrating the details of the horrifying gang-rapes they were subjected to in the post-poll violence by the members of ruling party.
- Advertisement -


Connect with us