News Updates
SEBI Imposes ₹1 Lakh Fine On Catalyst Trusteeship For Failing In Its Duties As Debenture Trustee
The Securities and Exchange Board of India (SEBI) has imposed a fine on Catalyst Trusteeship Limited for violations concerning its role as a debenture trustee (DT) in managing an issue by Spandana Sphoorthy Financial Ltd (SSFL). SEBI's findings indicated that Catalyst Trusteeship failed to fulfill key responsibilities required by the SEBI (Debenture Trustees)...
Banastarim Accident Case: Court Cancels Bail Of AAP Goa Chief Amit Palekar For Travelling Abroad Without Permission
A sessions court in Goa on Monday (August 26) cancelled the bail granted to Aam Aadmi Party's (AAP) state unit chief Amit Palekar in the 2023 Banastarim accident case–which resulted in the death of three persons, after observing that Palekar had violated the condition of not leaving the country without the court's prior permission. The court of Additional Sessions Judge (ASJ) Panaji (sitting...
Terror Funding Case: Delhi Court Orders Release Of Kashmiri Separatist Leader Shabir Shah In PMLA Case
A Delhi Court has ordered release of Kashmiri separatist leader Shabir Ahmad Shah in a money laundering case connected to a terror funding case.Additional Sessions Judge Dheeraj Mor of Patiala House Courts passed the order after noting that Shah has undergone the maximum sentence of seven years prescribed for the offence under Section 3 of PMLA. The court noted that Shah was in continuous...
Dispute Regarding GST Dues Not A Bar To Section 9 IBC Proceedings: NCLAT
The NCLAT Bench of Justice Rakesh Kumar Jain, Member (Judicial) and Arun Baroka, Member (Technical) has held that the dispute regarding payment of GST dues is not a “pre-existing dispute” between the parties that would preclude the initiation of Corporate Insolvency Resolution Process (CIRP) under Section 9 of the Insolvency & Bankruptcy Code, 2016 (IBC). Brief...
RBI Imposes ₹3.91 Crore Penalty On Lenden Club And Liquiloans For Regulatory Violations In P2P Lending And Digital Practices
The Reserve Bank of India (RBI) has imposed monetary penalties on two non-banking financial companies (NBFCs), Innofin Solutions Pvt Ltd and NDX P2P Pvt Ltd for failing to comply with various regulatory guidelines. These companies, known respectively as LenDen Club and LiquiLoans, were penalized ₹1.99 crore and ₹1.92 crore for violations of the RBI's directions related...
Mere Apprehension That Person Would Flee India Is Not Enough To Issue Look Out Circular: Calcutta High Court
The Calcutta High Court bench of Justice Shampa Sarkar has held that mere apprehension that a person would flee India and no steps could be taken to recover the money is not enough to issue a Look Out Circular (LOC) against him. Brief Facts: The matter pertained to a writ petition which was filed by an erstwhile Director of Visa Power Limited ("company in liquidation"). The...
Reciprocal Promises In Settlement Agreements Must Be Executed Simultaneously: Delhi High Court
The Delhi High Court bench of Justice Navin Chawla has held in a settlement agreement where both parties have made reciprocal promises, these promises must be executed simultaneously. Brief Facts: The dispute revolved around the execution of a decree from a 2005 suit filed to dissolve the partnership firm M/s Hotel Marina (Decree Holder). The decree, issued in March 2006 based on...
Independent, Non-Executive Directors Of Company Cannot Be Held Liable Under Section 138 Of NI Act Without Specific Allegations: Delhi High Court
The Delhi High Court bench of Justice Amit Mahajan has held that independent, non-executive directors of an accused company cannot be held liable under Section 138 of the Negotiable Instruments Act, 1881, if the complaints do not include specific allegations detailing their active role in the offence. Brief Facts: The matter pertained to petitions which challenged summoning...
Registrar Of Companies, Mumbai Imposes Rs. 1.08 Lakh Penalty On William Hill Ltd For Late Submission Of Beneficial Interest Declaration
The Registrar of Companies, Mumbai has imposed a penalty of Rs. 1.08 Lakh on William Hill Ltd for failure to submit the required declaration disclosing the beneficial interest in the company's shares within the stipulated thirty-day period. Section 89(2) of the Companies Act, 2013 mandates that any person who acquires a beneficial interest in shares of a company, but whose name is...
SEBI Imposes ₹6 Lakh Penalty On Vistra ITCL For Violating Debenture Trustee Regulations
The Securities and Exchange Board of India (SEBI) has imposed a penalty of Rs 6 lakh on Vistra (ITCL) India Ltd for several violations of the SEBI (Debenture Trustees) Regulations, 1993, and related guidelines. Key among the violations identified was the failure of Vistra to perform independent due diligence in the preparation of asset-cover certificates. SEBI's November...
Failure To Maintain Separate Register Of Members: RoC Chennai Fines Subam Benefit Fund Nidhi Limited And Director Rs. 3.5 Lakh
The Registrar of Companies, Chennai, has imposed a penalty of Rs. 3.5 lakh on Subam Benefit Fund Nidhi Limited and its director for failing to maintain separate registers for its members and for not keeping the required registers at the company's registered office. Section 88 of the Companies Act, 2013 mandates that companies must maintain certain registers, including the register...
CARE Ratings Ltd Settles with SEBI for Rs 13.05 Lakh over Regulatory Violations
CARE Ratings Ltd has settled a case with the Securities and Exchange Board of India (SEBI) concerning alleged breaches of regulatory guidelines. The settlement involves the payment of Rs 13.05 lakh. The SEBI initiated these proceedings under Section 15HB of the SEBI Act, 1992 following alleged violations of specific provisions related to the monitoring and review of ratings by...