Description

RTI appeal regarding withdrawal procedures from Madurai Rural Development companies dismissed as query sought clarification/opinion rather than information.

Summary

SEBI’s Appellate Authority dismissed Appeal No. 6569 of 2025 filed by Bhavasri regarding an RTI application seeking procedures to withdraw money from shares invested in Madurai Rural Development Benefit Fund India Ltd and Madurai Rural Development Transformation India Ltd. The appeal was dismissed as the query sought clarification/opinion rather than information under the RTI Act.

Key Points

  • Appellant filed RTI application on July 30, 2025 seeking withdrawal procedures and contact details for recovering invested amounts
  • SEBI had passed final order on July 17, 2015 against Madurai Rural Development Transformation India Limited (MRDTIL) for violations of Companies Act and ICDR Regulations
  • Economic Offence Wing (EOW) of Tamil Nadu Police had frozen all assets of MRDT Group under Tamil Nadu Protection of Interest of Depositors Act, 1997
  • SEBI order directed noticees to refund Rs. 5,32,34,400/- with 15% p.a. interest through committee constituted by Madras High Court
  • Query dismissed as seeking clarification/opinion, not information as defined under Section 2(f) of RTI Act

Regulatory Changes

No new regulatory changes introduced. This is an RTI appeal decision referencing historical enforcement action.

Compliance Requirements

No new compliance requirements. Appeal relates to existing refund order from 2015 being administered through court-constituted committee.

Important Dates

  • July 30, 2025: RTI application filed by appellant
  • August 22, 2025: CPIO response provided
  • September 19, 2025: Appeal filed (Reg. No. SEBIH/A/E/25/00252)
  • July 17, 2015: Original SEBI final order against MRDTIL
  • March 6, 2015: EOW report filed before Madras High Court

Impact Assessment

This is an individual investor grievance case with no broader market impact. The appeal relates to historical enforcement action from 2015 where recovery proceedings are being handled through Tamil Nadu Police EOW and court-appointed committee. Investors seeking refunds from MRDT Group companies should contact the Economic Offence Wing of Tamil Nadu Police rather than SEBI, as assets are frozen under state legislation and recovery is managed through court process.

Impact Justification

Individual RTI appeal case with no market-wide implications; relates to historical enforcement action from 2015