Regulator versus Regulator

On 26th May 2020, SEBI passed a one of a kind order imposing a penalty of Rs. 7 lakhs on another regulator – the National Highway Authority of India (NHAI) for delayed filing of unaudited half-yearly financial results within the stipulated period of 45 days from the end of the financial year.

Our founder, Sumit Agrawal penned his views and analyzed the consequences of what he termed to be a bold yet thoughtful order passed by the AO, in an article titled “Regulator versus Regulator”, which can be found here :

Today, i.e., 27th August 2020 – SAT passed an order allowing an appeal filed before it by NHAI, observing that the penalty was harsh and excessive and reduced it to a warning. It strictly ordered that the decision shall not be treated as a precedent in other matters. While holding that the penalty cannot be sustained against NHAI, it observed that the AO failed to consider mitigating factors while imposing a penalty. It also recognized that it was beyond the control of the officials to enforce strict compliance of statutory filings given the plethora of rules that govern the NHAI.