SAT quashes Sebi's fine of Rs 25 crore on Mukesh Ambani, Anil Ambani, others

The Securities Appellate Tribunal (SAT) on Friday set aside a Sebi order that imposed a Rs 25 crore penalty on industrialists Mukesh Ambani, Anil Ambani and other entities for non-compliance with takeover norms in the Reliance Industries case. The order came after Ambanis appealed in the appellate tribunal against the capital markets regulator’s directive.

"We find that the appellant has not violated … the SAST (Substantial Acquisition of Shares and Takeovers) Regulations. The imposition of penalty upon the appellant is without any authority of law. Consequently, the impugned order cannot be sustained and is quashed,” the appellate tribunal said in its 124-page order. The case pertains to alleged failure to comply with takeover rules.

Noting that the penalty amount following Sebi’s order was deposited by the appellants, SAT directed the markets regulator to refund the amount of Rs 25 crore within four weeks. In April 2021, Sebi levied a fine totalling Rs 25 crore on Mukesh Ambani, Anil Ambani, Nita Ambani, Tina Ambani and other entities for non-compliance with takeover norms in a Reliance Industries case dating back to 2000.

Nita is the wife of Mukesh Ambani and Tina is the wife of Anil Ambani. In its order, Sebi had stated that RIL’s promoters and Persons Acting in Concert (PAC) failed to disclose the acquisition of more than a 5 per cent stake in the company way back in 2000.