Description

RTI appeal regarding complaint against Eastcoast Steel Limited for alleged fraudulent land sale transaction affecting public shareholders.

Summary

SEBI’s Appellate Authority dismissed an RTI appeal filed by Suresh Kumar Jalan seeking information about action taken on his complaint against Eastcoast Steel Limited. The appellant had complained about alleged fraudulent sale of 55 acres of land worth ₹240 crores for only ₹43.24 crores to related parties, harming public shareholders.

Key Points

  • Appellant filed complaint against Eastcoast Steel Limited on March 1, 2024
  • Alleged fraudulent land sale: 55 acres sold for ₹43.24 crores against actual value of ₹240 crores
  • Transaction allegedly defrauded thousands of public shareholders
  • SEBI treated the complaint as market intelligence for confidential examination
  • RTI request for status update was denied under Section 8(1)(h) exemption
  • Appeal was dismissed as information is exempt from disclosure

Regulatory Changes

No regulatory changes introduced.

Compliance Requirements

  • SEBI maintains confidentiality of ongoing examinations and investigations
  • Market intelligence complaints are processed confidentially
  • Any regulatory actions taken by SEBI are published on SEBI website

Important Dates

  • March 1, 2024: Original complaint filed with SEBI
  • July 1, 2025: RTI application filed
  • July 30, 2025: SEBI response to RTI application
  • August 9, 2025: Appeal filed

Impact Assessment

Limited market impact as this involves an individual RTI appeal case. Reinforces SEBI’s policy of maintaining confidentiality during investigations to protect market integrity and evidence collection processes.

Impact Justification

RTI appeal case with limited market impact, involves individual complaint about specific company transaction