MUMBAI: A special court order in Mumbai, on Thursday, allowed technology firm Zenith Infotech and its two directors – Rajkumar Saraf and Akash Saraf to settle a case related to alleged asset-stripping with SEBI for a consent fee of Rs. 3.56 crore.

In the order, a special bench of the Sessions Court in Greater Mumbai, permitted Zenith’s promoters Rajkumar Saraf and Akash Saraf to compound the alleged offences by paying a consent fee of Rs.3,56,50,000 under the extant consent mechanism of SEBI.

The promoters and directors paid the consent fee amount on 9 September, thereby settling the case with SEBI, according to the court.

Following a thorough investigation, no evidence of any personal or illegal gain or insider trading was found by SEBI and the matter was proceeded for an out-court-settlement under SEBI’s consent mechanism framework.

Accordingly, the HPAC had advised SEBI and Zenith Infotech and its two promoters to settle the case for a consent fee of Rs. 3.56 crore.

In March 2013, SEBI had passed an interim order in the matter against the directors of Zenith Infotech Ltd and had alleged the latter of improper disclosures.

In March 2018, the whole-time member of SEBI had passed an order which found no evidence of siphoning or asset stripping by the promoters or directors of Zenith Infotech Ltd.

Similarly, no evidence was found of any personal or illegal gain or insider trading. Hence no order of disgorgement was passed against the promoters or directors of Zenith Infotech Ltd. However, SEBI had found certain breach related to timely disclosures on stock exchanges, basis which an interim order was passed.