Monday, March 1, 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

Watch: ‘Replace those who are not actively participating’ Union Minister Piyush Goyal disciplines irregular babus

Piyush Goyal was unhappy with members of governing council of Indian standards as their videos were switched off.

‘Inserted her hand claiming she was planting a tree’: LGBT activist Divya Dureja accused of sexual assault under pretext of shamanic ritual

A popular LGBT activist Divya Dureja has been accused of sexual assault by Elodie Gendron under pretext of a Shamanic ritual.

“You better withdraw the petition, warna jo kaam karte ho wo bhi band ho jaega”: Delhi HC pulls up petitioner over frivolous PIL

A plea was filed in the Delhi High Court by a petitioner seeking directions from the court to the state of Himachal Pradesh to release water through Western Yamuna Canal

Don’t fall for propaganda! WhatsApp will not have to breach end-to-end-encryption to follow the new IT guidelines

We're all well aware that the Govt of India has recently notified the new Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021

Gujarat 2002: The iconic photo(s) that were never taken and the question of ‘victimhood’

How the 59 Karsevaks who were burnt alive were never the victims of violence for the 'liberals'

Leftist Historian, who got the book on Delhi riots de-platformed, gives ‘activist’ Malala Yousafzai platform to propagate anti-India narrative

Malala, who had fled Pakistan after being shot at by Talibanis, has continued to peddle Pakistani propaganda against India.

Recently Popular

US President Joe Biden casually drops the N-word during Munich Security Conference, accused of racism on social media

The N-word is considered as one of the hateful words that were first uttered in the 17th century. Its origin can be traced back to the Spanish word 'negro', which is often used by white supremacists to deliberately offend the African-American community.

‘I’m Akhlaq you killed for one cow’: Islamic terror outfit Jaish-ul-Hind claims responsibility for placing bombs outside Mukesh Ambani’s residence

In the threat message that is addressed to the Ambanis, the Jaish-Ul-Hind terrorists said, "Next time the SUV will ram into your fat kids car you if don't agree to the demands now".

“A contest between my ball and your ball”: Netizens in splits after comments of Harsha Bhogle go viral

Harsha Bhohgle said that a cricket contest should be between bat and ball, not between bat and bat or ball and ball

‘Inserted her hand claiming she was planting a tree’: LGBT activist Divya Dureja accused of sexual assault under pretext of shamanic ritual

A popular LGBT activist Divya Dureja has been accused of sexual assault by Elodie Gendron under pretext of a Shamanic ritual.

Father of Richa Bharti, the girl who had refused to distribute Quran to secure bail, shot dead in native Bihar village: Read details

The father of the daring Bihar girl Richa Bharti has been shot down by assailants in her native village of Nalanda district in Bihar.

Gujarat: Ahmedabad woman Ayesha commits suicide by jumping into Sabarmati River, last video message goes viral

A video has gone viral on social media where Ayesha, a young woman, can be heard announcing her decision to commit suicide.
- Advertisement -

 

Connect with us

253,147FansLike
521,199FollowersFollow
23,800SubscribersSubscribe