BackIL&FS Engineering & Construction Co explores legal options against Sebi order
The statement said that Sebi has directed the company to repay Rs59.16 crore of unlawful gains along with simple interest of 12%
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Mumbai: IL&FS Engineering and Construction Company Ltd, which was earlier known as Maytas Infra Ltd, is planning to take the legal route to challenge the capital market regulator’s order asking the company to pay up Rs59.16 crore of alleged unlawful gains.
“The company shall explore and avail all legal rights available to it under the law to protect the interests of the company," said IL&FS Engineering and Construction Company Ltd in a statement issued to the stock exchanges on Monday.
The statement said that while the Securities and Exchange Board of India (Sebi) has directed the company to repay Rs59.16 crore of unlawful gains along with simple interest of 12% a year since 7 January 2009, it has acknowledged that the current promoters of the company did not have any role in the insider trading matter and therefore has not been debarred or restrained it from accessing the capital market.
“However, SEBI order, considering the special facts and circumstances of the case that (i) Infrastructure Leasing & Financial Services Limited (IL&FS) was brought in as new promoter of the company by the Hon’ble Company Law Board (CLB); and (ii) IL&FS did not have any role or involvement in the insider trading of Maytas Infra Limited, did not felt necessary to restraint/debar IL&FS Engineering and Construction Company Ltd (IECCL) accessing the capital market," said the statement.
On 10 September, the capital market watchdog ordered B. Ramalinga Raju, the main convict in the accounting fraud at erstwhile Satyam Computer Services Ltd, and nine entities linked to him to return over Rs1,800 crore of illegal gains made by them.
Sebi also sought an additional Rs1,500 crore as interest on the amount dating back to 7 January 2009, the day Raju, Satyam’s founder, admitted to fudging the books of the company over several years to the tune of Rs7,136 crore.
Acknowledging that IL&FS had acquired Maytas and renamed it IL&FS Engineering and Construction Co. after the fraud, Sebi said the latter wasn’t involved in the fraud, but added that “unlawful gains made on account of insider trading by Maytas and lying with IL&FS Engineering and Construction Co. cannot be allowed to be retained by it".
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