The Securities Appellate Tribunal (SAT) has directed markets regulator SEBI to look into the alleged violation of market norms by Cairn India, a subsidiary of Vedanta, with regard to withholding of dividends payable to Cairn UK Holdings.
The order came after Cairn UK Holdings Ltd. filed an appeal with the tribunal against an order passed by SEBI. In 2017, the U.K.-based firm had approached the regulator over non-payment of dividend amounting to over ₹340 crore by Cairn India and had appealed to SEBI to direct Vedanta’s subsidiary to pay the dividend along with an interest of 18% per annum.
In the appeal, Cairn UK Holdings had asked to “initiate proceedings under ... Companies Act against every director of Cairn India who were knowingly a party to the non-payment of the said dividend.” However, SEBI disposed of the complaint on the grounds that the unpaid dividend of over ₹660.63 crore was handed over by the firm to the income tax authorities and it would not be appropriate for SEBI to take any further action.
