Kolte-Patil Developers, 2 Other Individuals Settle Case with SEBI
Moneylife Digital Team 21 November 2022
Kolte-Patil Developers and two others on Friday settled, with markets regulator Securities and Exchange Board of India (SEBI), a case pertaining to the alleged violations of listing and disclosure rules, on payment of over Rs63 lakh towards the settlement amount. The other two applicants who settled the case are—GL Vishwanath and Manasa Vishwanath, SEBI said in an order. 
This comes after three applicants proposed to settle the alleged violations of LODR (Listing Obligations and Disclosure Requirements) Regulations 'without admitting or denying the findings' through a settlement order. 
In its show-cause notice issued to the entities, SEBI alleged that KPDL made wrong disclosures of related party transactions on three occasions in two half-yearly disclosures of FY18-19 and FY19-20.
Also, the Pune-based real estate firm allegedly did not disclose amendments to the Memorandum of Association (MoA) and Articles of Association (AoA) within 24 hours from the passing of the shareholder resolution in March 2019 and allegedly failed to comply with rules pertaining to independent directors and it allegedly did not have a minimum number of independent directors in the audit committee.
LODR Regulations specify that an independent director should not be related to promoters or directors of the company or subsidiary. However, two independent directors on the board of the company—GL Vishwanath and Manasa Vishwanath—were directly related to each other, being husband and wife. 
Pending adjudication proceedings initiated through show-cause notice, the entities filed applications with SEBI to settle the case and the markets regulator recommended to settling the case on payment of the settlement amount. Accordingly, Kolte-Patil Developers paid Rs41.92 lakh, while GL Vishwanath and Manasa Vishwanath remitted Rs10.72 lakh each.
3 months ago
few lacs settlement a public eyewash settlement a bad faith settlement
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