Regulations
SEBI exercises new powers to jail Vinod Hingorani

The civil imprisonment of Mr Hingorani was ordered by SEBI in its authority as Recovery Officer, for failing to pay fines due to SEBI

 

The Securities and Exchange Board of India (SEBI) ordered the civil imprisonment of Vinod Hingorani in connection with non-payment of fines related to the companies Adam Comsof Ltd. and Kolar Biotech Ltd.

 

Mr Hingorani had not cleared dues of Rs1.64 crore, pending with SEBI. The fines had been in relation to fraudulent practices in the securities markets. The SEBI Act was amended in February 2014, when powers of detention and imprisonment were added to the Act.

 

SEBI had issued a notice to appear before the recovery officer on 10 December 2014, which was adjourned to 18 December at Hingorani's request. When Hingorani appeared before the Recovery Officer and was unable to show just cause as to his inability to pay the fines, the Officer detained Hingorani at SEBI Bhavan in Mumbai. Hingorani was asked to come up with a proposal for paying the dues, which he did not to, following which, a warrant was issued and he was ordered to be sent to civil prison.

 

The order says that Hingorani is to remain in jail at Byculla District Prison, for a maximum of 6 months or till he pays the dues or until an order of release is issued.

 

As a regulatory body and a quasi-judicial body, SEBI has been given these powers on the lines of the Income Tax Department. This is also sure to stir up a debate about whether a judicial body should confirm or authorise an order of arrest before such bodies can execute such orders on their own.

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COMMENTS

Vikas Bengani

2 years ago

it is unbelievable that the truth is not come out yet

Vikas Bengani

2 years ago

he was released from jail on 13-03-2015. show the actual news. the Order was set aside by the Hon'ble Bombay High Court.

New York’s Gas Rush Poses Environmental Threat

The fracking debate has been ongoing in various parts of the developed world. Questions on environmental sustainability have become increasingly important in New York state where fracking has been a burgeoning industry.

 

A survey of other states had found "not one instance of drinking water contamination" from the water-intensive, horizontal drilling that would take place across New York's southern tier, the officials told lawmakers in Albany.

 

Reassured, the legislature quickly approved a bill to speed up the permitting process for a huge influx of wells that could bring the state upwards of $1 billion in annual revenue. Gov. David Paterson has until Wednesday to decide whether he will sign the bill, and the state's Department of Environmental Conservation, or DEC, says drilling permits could be approved in as little as 12 weeks.

 

But a joint investigation by ProPublica and New York City public radio station WNYC found that this type of drilling has caused significant environmental harm in other states and could affect the watershed that supplies New York City's drinking water.

 

Read Full Story here : http://www.propublica.org/article/new-yorks-gas-rush-poses-environmental-threat-722

 

Courtesy: ProPublica

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