Growpital Update - 05-July-2024

Summary

On July 5, 2024, the fate of Gropal investors hangs in the balance as the Securities Exchange Board of India (SEBI) and Gropal face off in a hearing adjudicated by the Securities Appellate Tribunal (SAT). The case, involving allegations of Gropal being an illegal collective investment scheme, has seen its bank accounts frozen and business continuity disrupted. With the hearing initially postponed to the 5th, it is further adjourned to the 10th, raising questions and anticipation for the outcome that could determine Gropal's future.

Takeaways

• 📅 Today is July 5, 2024, and the event is taking place at Nariman Point, Bombay.
• 📍 The hearing between SEBI and Gropal U is being held at the Earnest House on the 14th floor.
• ⚖️ The hearing will determine the future actions for Gropal investors.
• 🔍 SEBI passed an interim order on January 29, 2024, freezing Gropal's bank accounts, alleging it is an illegal collective investment scheme.
• 📄 SEBI followed up with a confirmatory order on April 26, 2024, rejecting Gropal's business continuity plan.
• 📅 Gropal filed an appeal against both orders, which was first heard on June 21, 2024, and postponed to July 5, 2024.
• 🛫 The narrator took an early morning flight to Bombay to attend the public hearing.
• 🏢 The hearing was relocated to the Mital Court in the B Wing due to the recent move of SAT's office.
• 👨‍⚖️ The hearing room features three judges: Justice PS Danesh Kumar, Technical Member Miss Mira Swarup, and Dr. DJ Batnagar.
• ⏳ The hearing was adjourned to July 10, 2024, for further filings and because the office move may have disrupted document transfers.
• 💼 The lawyer Kunal Kataria, representing Gropal, is known for his aggressive defense and has achieved interim relief in other SEBI cases.
• 🔜 Significant progress is expected in the next hearing on July 10, 2024.

Q & A

What is the significance of the 5th of July, 2024, at Nariman Point in Bombay?

The 5th of July, 2024, is significant because it marks the day of the hearing between SEBI and Gropal U at the Earnest House, which will determine the future of Gropal investors.

What is the role of SEBI in this hearing?

SEBI is the regulatory body that has passed interim and confirmatory orders against Gropal U, alleging it to be an illegal collective investment scheme. The hearing will determine the validity of these orders.

What is the Earnest House and why is it important in this context?

The Earnest House is the location where the hearing between SEBI and Gropal U is set to take place. It is significant because the hearing will be adjudicated by SAT, whose headquarters are located there.

What is the role of SAT in this hearing?

SAT (Securities Appellate Tribunal) is the body that will adjudicate the hearing between SEBI and Gropal U. It will determine the outcome of the appeals filed by Gropal U against SEBI's orders.

What happened on the 29th of January 2024 regarding Gropal U and SEBI?

On the 29th of January 2024, SEBI passed an interim order against Gropal U, freezing its bank accounts due to allegations of it being an illegal collective investment scheme.

What was the follow-up action by SEBI on the 26th of April?

On the 26th of April, SEBI followed up with a confirmatory order, which had a significant impact on Gropal U's business continuity plan.

Why did Gropal U file an appeal against SEBI's orders?

Gropal U filed an appeal against SEBI's orders because they contested the allegations of being an illegal collective investment scheme and the impact of the orders on their business.

What was the outcome of the hearing on the 21st of June 2024?

The hearing on the 21st of June 2024 was brief, and it was postponed to the 5th of July 2024, with both the appeals and orders still pending before SAT.

Why was the hearing adjourned to the 10th of July 2024?

The hearing was adjourned to the 10th of July 2024 due to the need for Gropal U to file an additional rejoinder and because of issues with the transfer of papers from the old SAT office to the new one at Mithal Court.

Who is Raj Sharma and what is his relevance to the hearing?

Raj Sharma is the CEO and founder of Gropal U. He is relevant to the hearing as he is a central figure in the case, although he is attending the proceedings remotely.

What was the atmosphere like at the Mithal Court on the day of the hearing?

The atmosphere at the Mithal Court was impressive and professional, with lawyers in their black courts and an audience waiting for the hearing to begin.

What is the significance of the Mithal Court in the context of the hearing?

The Mithal Court is significant as it is the new location of the SAT headquarters and the venue for the hearing between SEBI and Gropal U.

Outlines

00:00

🏢 Key Hearing at Nariman Point on July 5, 2024

Today, July 5, 2024, is a significant day for investors in Gropal as a crucial hearing takes place at Earnest House in Bombay's Nariman Point. This hearing, overseen by the Securities Appellate Tribunal (SAT), involves SEBI's interim and confirmatory orders against Gropal, accusing it of operating an illegal collective investment scheme. The hearing could decide the future actions for Gropal. After a previous brief hearing on June 21, 2024, today's session aims to address these critical issues. Despite expecting to meet Gropal's CEO, Raj Sharma, it turns out he is attending remotely. The hearing location has moved to Mital Court, which was newly inaugurated. The SAT hearing room is described in detail, and today's proceedings are expected to start at 11:00 AM, with the Gropal case listed as item number 15.

05:01

🔍 Brief Adjournment and Insight from SAT Hearing

The anticipated hearing at SAT regarding the Gropal case ended quickly, with a brief 10-second session leading to an adjournment until July 10, 2024. This was due to the need for filing an additional rejoinder and potential issues from moving SAT's offices. Observations from the hearing include the performance of lawyer Kunal Kataria, who effectively argued in another case involving SEBI. His strong representation and recent successes provide hope for the Gropal case. The progress made on the Gropal case suggests that substantial arguments will be presented at the next hearing. The report concludes with a sign-off from the SAT headquarters in Mumbai's Nariman Point.

Keywords

💡Nariman Point

Nariman Point is a prominent business district in Mumbai, India, known for its historical significance and modern commercial importance. In the video's context, it is the location where the future of global investors is being discussed, particularly in relation to the case between SEBI and Gropal U. The mention of Nariman Point sets the scene for the video's narrative, which revolves around a crucial hearing that could impact the financial landscape.

💡Earnest House

Earnest House is a building in Nariman Point where the Securities Appellate Tribunal (SAT) is located. The video script mentions it as the venue for the hearing between SEBI and Gropal U, which is a pivotal event in the video's storyline. The building's name is symbolic of the earnestness and gravity of the legal proceedings taking place within its walls.

💡SEBI

SEBI stands for Securities and Exchange Board of India, which is the regulatory body for securities markets in India. In the script, SEBI is involved in a legal dispute with Gropal U, having passed an interim order against it, alleging it to be an illegal collective investment scheme. The keyword 'SEBI' is central to understanding the regulatory conflict that is the main subject of the video.

💡Gropal U

Gropal U is the entity at the center of the legal dispute with SEBI. It is accused by SEBI of being an illegal collective investment scheme. The video discusses the implications of the hearing between Gropal U and SEBI, which will determine the future of Gropal U and potentially affect many global investors.

💡Hearing

A hearing in the legal context refers to a formal session where evidence is taken for the purpose of a decision. In the video, the term 'hearing' is used to describe the legal proceedings that will take place between SEBI and Gropal U at SAT. The outcome of this hearing is crucial as it will influence the fate of Gropal U and its investors.

💡SAT

SAT stands for Securities Appellate Tribunal, which is the appellate body for disputes related to securities in India. The video script highlights the role of SAT as the adjudicating authority for the case between SEBI and Gropal U. The decisions made by SAT in this hearing will have significant implications for the parties involved and the broader investment community.

💡Interim Order

An interim order is a temporary ruling made by a court or regulatory body before a final decision is reached. In the script, SEBI has passed an interim order against Gropal U, freezing its bank accounts, which is a critical step in the legal process leading up to the final hearing.

💡Confirmatory Order

A confirmatory order is a final or definitive ruling that confirms or rejects an interim order. The script mentions that SEBI followed up with a confirmatory order on April 26th, which had a significant impact on Gropal U's business continuity plan, further escalating the conflict between the two parties.

💡Appeal

An appeal is a legal procedure by which a case is brought from a lower court to a higher court for a new trial. Gropal U has filed an appeal against both the interim and confirmatory orders by SEBI, as mentioned in the script. The appeal process is central to the narrative of the video, as it leads to the crucial hearing at SAT.

💡Raj Sharma

Raj Sharma is the CEO and founder of Gropal U. The script refers to him as a 'poster boy' for Gropal investors, indicating his central role in the company and the perception of him by its investors. His absence from the hearing in person and participation remotely adds a layer of intrigue to the video's storyline.

💡Adjournment

Adjournment in a legal context means the postponement of a court session or hearing to a later date. The script describes how the hearing was adjourned until July 10th due to the need for an additional rejoinder and potential issues with the transfer of case files. This adjournment is a key development in the video, as it extends the suspense and uncertainty surrounding the case.

Highlights

The hearing between SEBI and Gropal U is set to determine the future of global investors at the Nariman Point in Bombay.

The hearing is taking place at the Earnest House, specifically on the 14th floor, where SEBI's headquarters are located.

The Securities Appellate Tribunal (SAT) will adjudicate the hearing, which is crucial for the fate of Gropal U's business operations.

SEBI had previously passed an interim order against Gropal U on January 29, 2024, alleging it to be an illegal Collective Investment Scheme (CIS).

Gropal U's business continuity plan was disrupted by SEBI's confirmatory order on April 26, 2024.

Gropal U filed an appeal against both SEBI orders, which were first heard on June 21, 2024, and then postponed to July 5, 2024.

The reporter traveled from Gurugram to Bombay to attend the public hearings at SAT, expecting to meet Gropal U's CEO, Raj Sharma, who is attending remotely.

The hearings were relocated to a nearby location called the Mital Court in the B Wing due to the movement of SAT's offices.

The Mital Court is a new office for SAT, inaugurated recently by Chief Justice Chandra Chur.

The Gropal U vs. SEBI case is listed as item number 15 for the hearing.

The hearing was unexpectedly short, with the lawyers meeting briefly before being adjourned to July 10, 2024.

The adjournment was due to the need to file an additional rejoinder and potential issues with the transfer of case files to the new SAT office.

Lawyer Kunal Kataria, known for his aggressive stance against SEBI in other cases, is representing Gropal U.

Kunal Kataria has shown success in quashing SEBI's arguments in a previous case, providing hope for a positive outcome for Gropal U.

Kataria suggests that significant progress has been made on the Gropal U case, indicating a comprehensive hearing with all arguments on July 10, 2024.

The reporter signs off from SAT in Mumbai, providing a glimpse into the legal proceedings and the atmosphere surrounding the case.

Transcripts

ladies and gentlemen today is 5th of

July

2024 and we are at a very famous place

in Bombay called the nariman point

nariman point has got a famous history

however none of that history matters if

you are a gropal investor because today

is a day when the future of the glal

investors hangs in the balance uh at

this place called the earnest house on

the 14th floor where the hearing will

take place between uh sebi and gropal U

and the hearing will be adjudicated by

sat whose headquarters are present on

the 14th floor out here at the earnest

house and that will determine the future

course of actions as a recap uh sebi

passed an interim order against gral on

the 29th of Jan 2024 freezing its bank

accounts alleging that it is a

collective investment scheme which is an

legal CIS and on the 26th of April SEI

followed it up with a confirmatory order

which uh you know trashed the business

continuity plan of

gropal well

gropal filed an appeal against both the

orders and um the appeal was first heard

on on well on the 21st of June 2024 and

after a brief hearing it was postponed

to the 5th of July 2024 now mind you

today's a D-Day both the appeals and

both the orders are in front of sat and

it determines it it will be determined

by S how it deals with both the appeals

and both the orders does it dispose them

in one shot or will there be separate

hearing dates further down the line so

what am I doing over here well I was

given to understand by the SE lawyers

that the hearings at sat are public in

nature so I took an early morning flight

from U guran to Bombay and I come over

here I thought I'll be rubbing shoulders

with the CEO and uh founder of gral ruaj

Sharma but he is unfortunately attending

the proceedings today remotely Raj

Sharma of course these days is a famous

poster boy where the gral investors sit

in their drawing rooms and throw dots at

him uh but let's see what the future has

in store for rrj and for all of us uh

let's head to the

courtroom so I was informed by the

earnest house folks on the 14th floor

that today all the hearings of sat are

taking place at a nearby place called

the mital court in the bwing so I'm just

walking down there because it's just 5

minutes from

here so I came that

and guess what I finally located it's

the mital Cod Bing where apparently the

hearing between SE and gral is going to

take place adjudicated by sat so I've

been directed to come to the first floor

and I see the government of India

Ministry of Finance Securities applet

tribunal apparently it's a new office so

it has been decorated very nicely out

here looks like I've come to the right

place I hope they let me attend the

hearing though and the hearing has not

yet started uh it's still early morning

it'll start around 11: right now it's

around 10:30 this is how a court room of

sat looks like looks very impressive in

our hearing the three judges of sat will

be sitting right up front uh justice PS

Danesh Kumar and there'll be technical

member Miss Mira swarup and finally

we'll have Dr DJ bat nagar who's also a

technical member the audience can sit

over here you already see one audience

member but overall a very impressive uh

looking room and in fact this is a mital

cour which was inaugurated as recently

as

yesterday uh as a SAT new office moving

from the earnest house to myl court and

this was inaugurated Yesterday by uh

chief justice uh Chandra chur

himself and we see an ominous bunch of

files fat set of files out here which

apparently represent the Penning cases

for

today uh the gral Seb case has been

listed as item number 15 today so I hope

we get a chance to get the Justice in

time and this is just a glimpse of all

the lawyers in their black courts who

eventually come to the building and

argue the case and stand before uh their

Lordships uh come to the

court hi guys so there we are I'm at uh

the Securities applet tribunal uh

headquarters at the methal court Wing SE

and and uh unfortunately nothing much

happened as far as a gral case uh is

concerned uh the the lawyers just met

for hardly 10 seconds on the mic uh

before the judges and the hearing was

adjourned till uh 10th of July that is

next Wednesday um you know it all

happened within 5 seconds later on I

asked the lawyers uh why it was done

like that so uh the lawyer Kunal kataria

gave me the reason in fact he gave me

two reasons one is that they have to

file an additional rejoiner uh to some

of the uh information which has come

from sebi and the second thing was that

due to the movement of uh the offices of

sat from nnest house to uh myle code out

here uh it seems that all the papers may

not have been uh you know transferred

properly that was one of the informal

reasons uh which was given for

postponement till the 10th of July

however the two things which I noticed

uh

first is that uh Kunal kataria as a

lawyer is is a Firebrand lawyer and he

was representing Rital out here uh and

he's backed up by a couple of more

lawyers and uh the way he was bashing

sebi in various other cases especially

one case related to some goia company

where uh the terminals were shut down

and so on um by sebi he just quashed s's

arguments over there and got reliefed

for that company and the terminals will

be restored and that's an interim relief

and the kind of arguments he was giving

over there were resonating with me and

were uh in fact I thought were very much

applicable to gral use case as well and

the second thing which Kunal told me

Kunal kataria is that a lot of progress

has been has been made on the gral use

case uh on the gral case and therefore

there's a lot of hope that u a hearing

would indeed take place with all the

arguments uh next week on Wednesday that

is 10th of July and we can see see some

progress further uh on the case but for

the moment uh this is prant signing off

from sat in Mumbai nariman point