In the latest blow to Avadhut Sathe Trading Academy, the Securities Appellate Tribunal (SAT) on Monday dismissed its plea to continue withdrawing funds from frozen bank accounts to meet monthly expenses. The Tribunal observed that the academy and its directors had failed to comply with its earlier directive to file an affidavit disclosing their assets, adding that a judicial pronouncement cannot be modified once delivered.
“Admittedly, the appeal has been finally disposed of by this Tribunal. Therefore, no further orders are necessary to give effect to this Tribunal’s order,” the SAT stated.
The case pertains to unlawful gains allegedly made by the appellants through unregistered market activities between 2020 and 2025. The SAT had earlier directed them to deposit Rs 100 crore, granting partial relief from the Securities and Exchange Board of India’s (Sebi) order that required them to pay Rs 546 crore.
According to Sebi’s order last year, the trading academy and its directors—Avadhut Dinkar Sathe and his wife, Gouri Avadhut Sathe—had earned large sums by “recklessly misleading” investors to trade in securities based on their advice. The academy also allegedly uploaded deceptive testimonials from individuals claiming profits through Sathe’s advice, though they had actually incurred losses.
Sebi’s Evidence of Deception
Chetan Kapadia, appearing on behalf of Sebi, told the Tribunal that the academy had not removed the misleading testimonials despite the regulator’s interim order. “He produced printouts of testimonials and submitted that as on date, appellants are in violation of this Tribunal’s order.”
In December, the appellants were permitted to withdraw Rs 2.25 crore from frozen accounts to cover expenses, including salaries, electricity bills, and legal fees. However, the appeal was disposed of in January. They subsequently sought permission from SAT to continue withdrawing funds until Sebi’s inquiry was fully concluded.
Abhinav Chandrachud, counsel for Avadhut Sathe, argued that the request to access funds did not amount to seeking a review or modification of the SAT’s final order. He added that they are in the process of filing an appeal in the Supreme Court to challenge the Tribunal’s decision.
Finfluencer Crackdown
Sathe and his academy are not registered with Sebi, making the case one of the most high-profile regulatory crackdowns on financial influencers—or “finfluencers”—in India. The controversy has spotlighted how unregistered investment advisory often blurs the line between financial education and market solicitation. The academy’s use of live market data for training purposes also violated the regulatory requirement of using data with a one-day lag.