Legal Victory for Mukesh Ambani as SAT Nullifies SEBI’s ₹25 Crore Fine in 2007 RPL Case
New Delhi: In a significant turn of events, the Securities Appellate Tribunal (SAT) has overturned the Securities and Exchange Board of India (SEBI) order imposing a huge fine of ₹25 crore on billionaire Mukesh Ambani and his group Reliance Industries Limited (RIL). The fine was related to alleged manipulation of shares in the 2007 Reliance Petroleum Limited (RPL) case.
SEBI’s 2021 order fined RIL chairman Mukesh Ambani and his company for violating takeover norms during the sale of 5 per cent shares in RPL. The tribunal’s decision to cancel the fine comes after entities involved in the case, including Ambani’s company, appealed against the SEBI order.
The case dates back to 2007, which focused on the sale and purchase of RPL shares. SEBI alleged violations of takeover rules, arguing that promoters, including Mukesh Ambani, exceeded the regulated limit of 5 percent ownership.
SAT’s reasoning for overturning the SEBI order was rooted in the evidence presented during the proceedings. The tribunal pointed to the minutes of the board meetings, which conclusively demonstrate that the transactions in question were executed by senior officials without the knowledge of Mukesh Ambani. SAT stressed that Ambani cannot be held responsible for every alleged violation by corporate entities.
The tribunal’s decision not only acquitted Ambani of the penalty imposed, but also challenged SEBI’s ability to establish his involvement in the trading done by RIL officials. The cancellation of the fine is a legal victory for Mukesh Ambani, which reinforces the principle that accountability for corporate actions should be judicious, based on evidence and participation.
Mukesh Ambani’s legal victory not only protects his personal reputation but also underlines the importance of clear evidence in regulatory proceedings, setting a precedent for corporate accountability in India’s financial landscape.
