<p>New Delhi: The <a href="https://www.deccanherald.com/search?q=supreme%20court">Supreme Court</a> on Friday set aside an order directing <a href="https://www.deccanherald.com/search?q=reliance">Reliance Industries Ltd</a> (RIL) to disgorge Rs 447.27 crore in a matter relating to the trading of Reliance Petroleum Ltd (RPL) shares in 2007.</p><p>The apex court partly allowed the appeal filed by RIL challenging a November 2020 order of the Securities Appellate Tribunal (SAT), Mumbai.</p><p>The SAT, by a 2:1 majority order, dismissed RIL's appeal against the Securities and Exchange Board of India (SEBI )'s March 24, 2017, order relating to the sale of RPL shares in November 2007.</p><p>The top court said the SAT, in its majority verdict, committed an "egregious error" in passing the judgement insofar as the question of fraud under Regulations 3 and 4 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market), 2003 (PFUTP) is concerned.</p><p>"However, we concur with the SAT's observations in its majority judgment as regards the penalty to be levied on the appellant number 1 (RIL) for violating the disclosure requirements under the 2001 SEBI circular concerning position limits," a bench of Justices JB Pardiwala and R Mahadevan said in its 136-page verdict.</p><p>The bench said it had no other option but to set aside the November 5, 2020 order passed by the SAT concerning the finding of fraud under the PFUTP Regulations.</p>.KG Basin: SC agrees to fresh request by RIL to resolve dispute with Centre.<p>"In the result, the appeal partly succeeds and is hereby partly allowed. Accordingly, the order of disgorgement is also set aside," the apex court said.</p><p>It directed that RIL be refunded the Rs 250 crore deposited in the investor's protection fund pursuant to the Supreme Court's December 17, 2020 order, as the apex court had admitted the appeal against the SAT order.</p><p>"As and by way of interim relief, we order and direct that the appellants shall, within a period of four weeks from today, deposit Rs 250 crore in the Investors' Protection Fund in compliance with the order of the Whole Time Member, subject to the final result of the appeal," the top court had then said.</p><p>The recovery of the balance, including interest, was pending the appeal.</p><p>In its Friday verdict, the bench noted the SAT had dismissed the appeal filed by RIL against the order of the Whole Time Member of SEBI, essentially on the ground that RIL made an illegal and undue gain of Rs 447.27 crore while trading in the shares of RPL by manipulating the prices to profit in the futures segment.</p><p>The top court said it is an undisputed fact that RPL was a 75 per cent subsidiary of RIL in 2007.</p>
<p>New Delhi: The <a href="https://www.deccanherald.com/search?q=supreme%20court">Supreme Court</a> on Friday set aside an order directing <a href="https://www.deccanherald.com/search?q=reliance">Reliance Industries Ltd</a> (RIL) to disgorge Rs 447.27 crore in a matter relating to the trading of Reliance Petroleum Ltd (RPL) shares in 2007.</p><p>The apex court partly allowed the appeal filed by RIL challenging a November 2020 order of the Securities Appellate Tribunal (SAT), Mumbai.</p><p>The SAT, by a 2:1 majority order, dismissed RIL's appeal against the Securities and Exchange Board of India (SEBI )'s March 24, 2017, order relating to the sale of RPL shares in November 2007.</p><p>The top court said the SAT, in its majority verdict, committed an "egregious error" in passing the judgement insofar as the question of fraud under Regulations 3 and 4 of the Securities and Exchange Board of India (Prohibition of Fraudulent and Unfair Trade Practices relating to Securities Market), 2003 (PFUTP) is concerned.</p><p>"However, we concur with the SAT's observations in its majority judgment as regards the penalty to be levied on the appellant number 1 (RIL) for violating the disclosure requirements under the 2001 SEBI circular concerning position limits," a bench of Justices JB Pardiwala and R Mahadevan said in its 136-page verdict.</p><p>The bench said it had no other option but to set aside the November 5, 2020 order passed by the SAT concerning the finding of fraud under the PFUTP Regulations.</p>.KG Basin: SC agrees to fresh request by RIL to resolve dispute with Centre.<p>"In the result, the appeal partly succeeds and is hereby partly allowed. Accordingly, the order of disgorgement is also set aside," the apex court said.</p><p>It directed that RIL be refunded the Rs 250 crore deposited in the investor's protection fund pursuant to the Supreme Court's December 17, 2020 order, as the apex court had admitted the appeal against the SAT order.</p><p>"As and by way of interim relief, we order and direct that the appellants shall, within a period of four weeks from today, deposit Rs 250 crore in the Investors' Protection Fund in compliance with the order of the Whole Time Member, subject to the final result of the appeal," the top court had then said.</p><p>The recovery of the balance, including interest, was pending the appeal.</p><p>In its Friday verdict, the bench noted the SAT had dismissed the appeal filed by RIL against the order of the Whole Time Member of SEBI, essentially on the ground that RIL made an illegal and undue gain of Rs 447.27 crore while trading in the shares of RPL by manipulating the prices to profit in the futures segment.</p><p>The top court said it is an undisputed fact that RPL was a 75 per cent subsidiary of RIL in 2007.</p>