SAT Overturns SEBI's Penalties and Market Ban on Bombay Dyeing and Promoters

The Securities Appellate Tribunal (SAT) overturned the Securities and Exchange Board of India's (SEBI) 2022 order that barred Bombay Dyeing, its promoters Nusli Wadia and his sons, and related entities from the securities market for alleged financial misrepresentation between 2011-12 and 2017-18. The tribunal criticized SEBI's nearly nine-year delay in action, set aside penalties totaling around Rs 15.75 crore, and directed refunds of paid fines. SEBI had accused Bombay Dyeing of inflating revenue through transactions with SCAL Services Ltd, which it claimed was effectively controlled by the company but not consolidated in financial statements.