SEBI penalty order: Congress demands Rupani resignation, questions PM’s silence over ‘graft’

The Congress on Thursday demanded the resignation of Gujarat Chief Minister Vijay Rupani after the Securities and Exchange Board of India (SEBI) imposed penalties on 22 entities, including his Hindu Undivided Family (HUF), for manipulative trading in a listed firm. The party also questioned Prime Minister Narendra Modi’s silence on the issue. With Assembly elections in Gujarat just weeks away, the Congress took the opportunity to attack the BJP over the SEBI move. “In case of Rupani, these are not allegations... he was given repeated opportunities by SEBI, he refused to reply a couple of times, then the CM said he is on bed rest for six months. The Chief Minister of Gujarat says to SEBI that he is on bed rest... does not reply for close to a dozen weeks and finally refuses to reply altogether,” Congress communication department head Randeep Surjewala said, addressing a press conference. “After due notices and a proceeding which has gone on for a few years, SEBI has proceeded to penalise him. It is not an allegation... and what is the charge? Rupani’s HUF was trying to within itself sell and purchase shares of Sarang Chemicals. and SEBI has gone a step further saying it was done to ensure that the trading volume of the company shares goes to an extent whereby private investors find that this company is a very high-volume trading company, making them invest money into the company,” he said. The Congress demanded an investigation into the dealings of Rupani HUF with Sarang Chemicals Limited “including the reasons and considerations for artificially manipulating the trade volume and consequent price of shares of the company... whether any insider trading took place and whether any benefits, monetary or otherwise, were exchanged”. “He continues to be Chief Minister even after the indictment... Does such a person have the right even for a minute to continue in public office... I don’t think that in recent history there has been a stronger case of malpractices by an HUF directly linked to the Chief Minister,” he added. His party colleague Akhilesh Pratap Singh, who too was present, said it was time for the Prime Minister to break his “maun vrat” on issues of corruption and face accountability. A Securities Appellate Tribunal order published on its website on Thursday, however, said that SEBI will pass a fresh order in the case of alleged manipulative share trade involving Rupani’s HUF and 21 others. “SEBI shall pass fresh order after giving an opportunity of hearing to all the parties,” it said. The tribunal “set aside” the penalty order, dated October 27, after hearing an appeal filed by Akash Harishbhai Desai, one of the 22 entities penalised by the regulator.