The Supreme Court on Monday upheld the relief against Apollo Tyres, quashing an order issued by the Securities Appellate Court9 this month quashing the Securities and Exchange Board of India’s 6.5 decision of Rs. 1 crore fine on the company for violating the 2003 rules Annual share buyback rules for violating the 2003 rules for violating the 2003 rules for violating the 2003 rules for violating the 2003 rules for violating the 2003 rules for violating the 2003 rules for the company.

In 2018, Sebi imposed a penalty on Apollo Tyres for the repurchase of 690,000 shares of Apollo Tyres by the company and its promoters in violation of the relevant provisions of the Companies Act and Sebi Rules.

The bench headed by Justice Sanjeev Khanna withdrew during the hearing. The Supreme Court also asked Sebi to file an appeal against the SAT order and provide the list of appeals ordered by the court.

The apex court also asked Apollol case head Tiless to explain why the action against the company was unduly delayed as Sebi passed the order in the year 2018, nearly 15 years years after the alleged violation of buyback norms.

In its appeal, Sebi has alleged that the SAT has grossly violated its order. The misconception of delay is meaningless and there is no provision in the law restricting investigation, initiation of proceedings and passing of orders.

In September last year, the tribunal dismissed SEBI’s appeal and asked Apollo Tyres to refund the penalty paid.

Sebi said Apollo Tyres was not following the modalities of share repurchase as prescribed in the share repurchase rules, which regulate share repurchases through tender offers and stock exchange registration filings in the open market. However, Apollo Tyres claimed that while information relating to share buybacks has been disclosed to SEBI and has been in the public domain since 2013, it issued a notice explaining the reasons for the same only in January 2014 after 11 years.

“While the Supreme Court has upheld the decision to sell 3.69 lakh shares, we are of the view that whether SEBI may have violated the share buyback rules or Section 77 of the Companies Act will not be penalized. Once the SC confirms the sale of Rs 3.69 lakh crore, all alleged violations will be deemed waived and the interveners can no longer allege violations and SEBI can no longer impose penalties for alleged violations,” the NIT said.