Sebi today rejected a plea by Abhijit Dutta, a director at Rose Valley Hotels and Entertainment Ltd, for revoking the four-year securities market ban imposed on him, citing that there was no "tenable ground" to alter the earlier directions.
In November 2017, Sebi had restrained Dutta and other directors from accessing the securities market for four years. Besides, they were disqualified from holding or assuming position as directors or key managerial personnel of any listed company for four years.
The decision was taken after Sebi held that the firm and its directors were liable for launching and operating unregistered Collective Investment Scheme (CIS). They were directed to wind up the company's holiday membership plans and refund investors' money.
Later, Dutta had approached Securities Appellate Tribunal (SAT), which stayed the Sebi's ruling relating to disqualifying him from holding position as director or key managerial personnel at any listed company. It had asked the regulator to pass appropriate order as expeditiously as possible.
While staying the order, the tribunal had also made it clear that Dutta would not seek any fresh appointment as director or key managerial personnel of any firm till the disposal of the appeal.
In an order today, Sebi Whole Time Member G Mahalingam said the directions were passed against Dutta after carefully weighing his role as the CEO and director of the company which resorted to illegal mobilisation of money.
"Therefore, I find no tenable ground in the aforesaid representation of the applicant to alter or interfere with the earlier directions," he said in the order.
Rose Valley Hotels and Entertainment Ltd is among the Rose Valley group entities that are facing regulatory action for illegal mobilisation of funds.