S&R Associates Successfully Represented CUHL against Vedanta in SEBI Proceedings
S&R Associates Successfully Represented CUHL against Vedanta in SEBI Proceedings
In a significant legal development, S&R Associates has emerged victorious in representing Capricorn UK Holdings Limited (CUHL), a subsidiary of Capricorn Energy PLC (formerly Cairn Energy PLC), in proceedings before the Securities & Exchange Board of India (SEBI). The case involved allegations against Vedanta Limited, a renowned natural resources and technology conglomerate, for violations of the Companies Act, 2013, and SEBI’s Listing Obligations and Disclosure Requirements Regulations.
SEBI's concluded that Vedanta had failed to make timely dividend payments to CUHL. The regulatory body directed Vedanta to pay interest amounting to INR 776.2 million to CUHL within 45 days. Furthermore, SEBI barred Vedanta's entire Board from accessing the capital market.
The genesis of the dispute can be traced back to April 13, 2017, when SEBI received a complaint from CUHL alleging non-payment of dividends amounting to ₹340,64,76,634 by Cairn India Ltd. This pertained to 184,125,764 equity shares of Cairn India owned by CUHL.
Following subsequent communications and appeals, SEBI initially informed CUHL that all outstanding unpaid dividends had been paid to the Income Tax Department against a recovery notice. However, CUHL appealed before the Securities Appellate Tribunal (SAT), challenging SEBI's decision. The SAT, in turn, directed SEBI to reevaluate and pass appropriate orders.
Upon re-examining the complaint, SEBI informed CUHL that the allegations of violation by Cairn India Ltd were not substantiated. Dissatisfied with this decision, CUHL filed appeal before the SAT, urging SEBI to initiate an inquiry into the violations of the Companies Act. The SAT upheld CUHL's appeal, thereby directing SEBI to investigate the matter further.
S&R Associates, effectively represented CUHL's interests throughout the proceedings before SEBI, as well as in previous related cases before the Securities Appellate Tribunal and the Supreme Court of India. The legal team, spearheaded by partners Niti Dixit, Shahezad Kazi, and Abhishek Tewari, demonstrated exceptional expertise and advocacy. Associates Gladwin Issac and Keshav Somani contributed significantly to the representation. Additionally, CUHL received valuable counsel from Uday Walia of Touchstone Partners, further reinforcing its legal position.
This successful outcome underscores S&R Associates' prowess in navigating complex legal matters and upholding the interests of its clients in high-stakes disputes. The case sets a precedent for regulatory compliance within the securities market and highlights the importance of adhering to statutory obligations.
