In October 2008, Indian Share market requlator Securities and Exchange Board of India (SEBI) had directed Mr. Mehta to disgorge the unlawful gains of Rs 72. lakh made from Initial Public Offer (IPO) of Suzlon & IDFC. The amount was to be paid to the regulator within 45 days and also included the interest.
Additionally, the regulator SEBI has restrained Mehta from dealing in the securities market for a period of 2 years.
"After taking into consideration all the facts and circumstances of the case, I impose a penalty of Rs 1 crore ...For his failure to comply with the directions issued by SEBI vide order dated October 31, 2008,"
Sebi's adjudicating officer Mr. Barnali Mukherjee said in an order issued recenty.
In its earlier order, the regulator SEBI had ruled that Mr. Mehta was the mastermind in the manipulation of retail segment of the Suzlon & IDFC IPOs.
"He manipulated the demand for shares in the retail category and thereby distorted market integrity. He deprived retail individual investors of their legitimate shares in the Suzlon & IDFC IPOs and made an unlawful gain of Rs. 72 lakh," SEBI had noted.
Following SEBI's order, Mr. Mehta had approached the Securities and Appellate Tribunal (SAT) which had dismissed his appeal in the year 2009.
Thereafter, Mr. Mehta had approached the Supreme Court which also set aside his appeal last year (2012).
