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TG HC grants relief to Brightcom promoter
Penalty recovery against Suresh Kumar Reddy suspended for 2 weeks
Hyderabad: The High Court of Telangana has granted interim relief to Suresh Kumar Reddy, promoter of Brightcom Group Limited, by suspending the penalty recovery proceedings initiated by the Securities and Exchange Board of India (Sebi).
The relief comes in response to a writ petition filed by Reddy challenging Sebi’s order dated February 6, 2025, which imposed financial penalties under various provisions of the Sebi Act and the Securities Contracts (Regulation) Act.
After reviewing the case, the High Court noted that there was no substantive evidence justifying the quantum of the penalty imposed. Consequently, it ordered an interim suspension of the penalty recovery, specifically the amount mentioned in Paragraph 190(e) of the SEBI order. This suspension will remain in effect for two weeks, with further proceedings scheduled for April 1, 2025.
Legal representatives for Reddy argued that the SEBI order lacked jurisdiction and did not provide sufficient reasoning for the imposed penalties. SEBI, in its defense, contended that the writ petition was not maintainable, citing the availability of statutory appeals. The regulatory body also sought additional time to file a counter-affidavit.
With the matter set for further hearing, stakeholders will be closely watching the legal developments surrounding this high-profile case.
