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Judgment
Since we have taken up the matter for hearing, the urgency application is allowed and disposed of accordingly.
Let a reply be filed by the respondent within three weeks. Rejoinder to be filed within three weeks thereafter. The matter would be listed for admission and for final disposal on December 22, 2023.
A penalty of Rs. 50 lakh has been imposed on the ground of conflict of interest, non-disclosure and lack of due diligence on the part of the appellant. Insofar as the conflict of interest is concerned, it is the case of the appellant that investors were specifically asked and they had no problem of the alleged investment. Further we find that while considering the factors under 15J, a settlement order has been taken into consideration to show that appellant is a repeat violator.
Considering the aforesaid, we direct the appellant to deposit a sum of Rs. 10 lakh before the respondent within 4 weeks from today. If the said amount is deposited, the balance amount shall not be recovered during the pendency of the appeal. The stay application is disposed of.