[NDTV Promoters v. SEBI] Supreme Court modifies SAT order, stays recovery of ₹27 Cr imposed by SEBI on Prannoy Roy, Radhika Roy

The Supreme Court on Friday stayed the recovery of penalty of ₹ 27 crore imposed by Securities and Exchange Board of India (SEBI) on NDTV promoters, Prannoy Roy and Radhika Roy, for concealing price sensitive information from shareholders [Radhika Roy v. Securities and Exchange Board of India]..A Bench of Justice DY Chandrachud and MR Shah modified a February 15 order of Securities Appellate Tribunal (SAT) which had mandated deposit of 50 percent of the penalty amount during the hearing of the appeal against SEBI order. ."The order passed by the Tribunal on 15 February 2021 requiring a deposit of 50% of the penalty shall accordingly stand substituted by a direction that pending the hearing and final disposal of the appeals before SAT, there shall be a stay on the recovery of the penalties which have been imposed by the Whole Time Member of SEBI in the order dated 24 December 2020," the Supreme Court ordered. .The top court further directed the Roys to co-operate to ensure the expeditious disposal of the appeals before SAT, which are listed for final hearing on April 6. .The SEBI had, on December 24, 2020 imposed Rs. 27 crore penalty on the three NDTV promoters - Prannoy Roy, Radhika Roy and RRPR Holding Limited - for failing to disclose price sensitive information to the shareholders of NDTV.While a Rs. 25 crore penalty was imposed jointly and severally on all three promoters, Rs. 1 crore each was directed to be paid separately by Prannoy and Radhika Roy.Roys had then approached the SAT in appeal. .On February 15, the SAT directed that if Roys deposit 50 percent of the amount minus interest within four weeks, the balance amount shall not be recovered during the pendency of the appeal. "The matter would be listed for admission and for final disposal on April 6, 2021. 2. In the meanwhile, if the appellant deposits 50% of the amount minus interest within four weeks from today, the balance amount shall not be recovered during the pendency of the appeal," the SAT order said. The promoters challenged this order before the Supreme Court. .[NDTV Promoters v. SEBI] Recovery of money from Prannoy Roy, Radhika Roy should not be a pre-condition for SAT to hear appeal: Supreme Court.The Supreme Court on Friday noted that the SAT had not furnished any reasons for its conditional order. ."SAT has furnished no reasons for its conditional order directing the deposit of half the penalty. SAT is amenable to the appellate jurisdiction of this court. Unreasoned orders do not facilitate judicial oversight by a superior court," the apex court observed. .The Court said that it would have normally remitted the matter back to SAT for giving a reasoned order but since the appeals are slated for final disposal on April 6, the top court said that it would pass an order without sending the matter back to SAT. .It, therefore, proceeded to modify the SAT order by doing away with the condition of deposit of 50 percent penalty. .[Read Order]