Shirpur Gold Refinery approached the Bombay High Court on Wednesday following an interim order-cum-show-cause notice by Sebi the previous day, alleging the company had created a scheme to divert funds from debtors to entities of promoter groups.
The HC did not grant any relief, and the company will now file an appeal before the Securities Appellate Tribunal. “Sebi argued that SAT is the appropriate forum for these kind of proceedings. After hearing the parties, the company felt that high court might not be inclined to give a stay and decided to move SAT,” said a person in the know.
Shirpur had created an elaborate scheme to defraud investors and financial institutions on the pretext of purchases and sales from/to connected entities and/or through undisclosed fund transfers during FY19, FY20 and FY21, Sebi said in its interim order on Tuesday. The assets of Shirpur to the tune of Rs 404 crore were diverted through its debtors, which ultimately reached the promoter and promoter-related companies.
The non-genuine transactions with the debtors were depicted as genuine business by Shirpur in its financial statements. The company and its directors tried to mislead the investigation and the audit by failing to cooperate in providing information sought by Sebi and the forensic auditor.
Shirpur has been taken to the NCLT under IBC by its financial lenders and the scrip of the company is currently suspended for trading.
