SAT Grants Partial Relief to Avadhut Sathe Trading Academy: Penalty Reduced to ₹100 Crore

The Securities Appellate Tribunal (SAT) has directed Avadhut Sathe Trading Academy Pvt Ltd to deposit ₹100 crore, granting partial relief in its appeal against the market regulator’s interim order that had demanded recovery of ₹546 crore in alleged illegal gains.

Freeze on Accounts and Trading to Be Lifted

The tribunal ruled that provisions in the interim order freezing the academy’s bank accounts and restraining the appellants from trading would cease to apply once the ₹100 crore deposit is made.

Explaining the decision, Justice P.S. Dinesh Kumar observed that the academy’s fixed assets were valued at around ₹100 crore and that, after accounting for tax liabilities of ₹166 crore, the interests of justice would be met by directing a ₹100 crore deposit while restraining the appellants from alienating their fixed assets.

How SAT Recalculated the Amount?

The tribunal arrived at the revised sum after deducting income tax and GST payments, amounts donated toward corporate social responsibility initiatives, and contributions made to government funds such as PM CARES. It further reduced the figure by factoring in the value of the company’s fixed assets.

SEBI’s Allegations Against the Academy

The Securities and Exchange Board of India (SEBI) has accused the academy, its founder Avadhut Sathe, and his wife Gouri Sathe of placing trades using live market data under the guise of educational activities. The regulator also alleged that the academy provided unregistered investment advice through WhatsApp groups.

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What are Next Steps?

Justice Dinesh Kumar granted both parties four weeks to file their replies and clarified that the final order to be passed by SEBI’s Whole Time Member would be issued independently of SAT’s interim directions.

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