SECURITIES AND EXCHANGE BOARD OF INDIA vs MAHENDRA A. SHAH

Judgment text excerpt

Neeta Sawant ALP 92 of 2024.docx IN THE HIGH COURT OF JUDICATURE AT BOMBAY CRIMINAL APPELLATE JURISDICTION APPLICATION FOR LEAVE TO APPEAL (PVT) NO. 92 OF 2024 Securities and Exchange Board of India …..APPLICANT : VERSUS : Mahendra Shah and Anr. …RESPONDENTS Mr. Chetan Kapadia, Senior Advocate with Ms. Sabiha Ansari, Ms. Tanvi Rane and Ms. Vidisha Rohira for the Applicant. Mr. Sarosh Bharucha with Mr. Kaevaan Setalwad and Ms. Payal Upadhyay i/b M/s. ANP Chambers for the Respondent. Mr. Vinit A. Kulkarni, APP for Respondent/State. Umar Arya, Officer SEBI present in Court. Sharika KG, DGM SEBI present in Court. Digitally signed by NEETA CORAM : SANDEEP V. MARNE, J. NEETA SHAILESH SHAILESH SAWANT SAWANT Date: JUDGMENT RESD. ON : 17 DECEMBER 2025. 2025.12.24 20:11:52 +0530 JUDGMENT PRON. ON : 24 DECEMBER 2025. JUDGMENT : 1) This is an Appeal preferred by the Securities and Exchange Board of India (SEBI) allowing the Compounding Application and discharging the Respondent of the offence punishable under Section 24(2) of the Securities and Exchange Board of India Act, 1992 (SEBI Act). The Special Court has allowed the application preferred by the Respondent for _____________________________________________________________________________ PAGE NO. 1 of 28 24 DECEMBER 2025 Neeta Sawant ALP 92 of 2024.docx compounding of offences and has permitted compounding by directing Respondent No.1 to pay penalty of Rs.54,00,000/- alongwith interest @ 6% p.a. from the date of adjudication of order in addition to payment of amount of Rs.1,00,000/- towards legal charge. Appellant-SEBI is aggrieved by orders dated 4 March 2024 and 4 April 2024 to the limited extent of the Special Court reducing the rate of interest from 12% p.a. to 6% p.a. and this is the limited remit of enquiry in the presen