The Securities Appellate Tribunal quashed an order by securities regulator SEBI asking Prabhat Dairy Ltd. to deposit over Rs 1,292 crore. SAT also directed the regulator to process the delisting application of the firm and pass appropriate orders within six weeks.
“The direction of the WTM to deposit a sum of Rs 1,292.46 crore is wholly arbitrary and has been passed without any application of mind,” the tribunal said.
WTM refers to whole-time member of the Securities and Exchange Board of India.
In October, SEBI had directed Prabhat Dairy to deposit over Rs 1,292 crore proceeds from the sale of its key business in a nationalised bank pending a forensic audit. Prabhat’s management was allegedly un-cooperative with the auditor.
The regulator had appointed Grant Thornton Bharat LLP as forensic auditor in July to ascertain facts and circumstances in relation to financials of the firm with…