In a recent case, the Madras High Court made a significant observation regarding the use of PAN (Permanent Account Number) particulars as a means of individual identification. The court emphasized that PAN details are just one of several methods to establish a person’s identity. Therefore, simply because the Adjudicating officer of SEBI (Securities and Exchange Board of India) had erroneously mentioned an incorrect PAN number in the order, it did not absolve the individual from the obligation to pay interest.
Observation & Judgement of the Court:
This matter came before the court when G Moorthy filed a plea in response to a notice issued by the Recovery Officer at SEBI, which entailed the attachment of his two bank accounts and a freeze on their operations. Initially, the Adjudicating Officer at SEBI had imposed a substantial penalty of Rs. 25,52,781 on Moorthy.
Despite the incorrect PAN number in the order, Moorthy chose to ignore this discrepancy and proceeded to appeal to the Securities Appellate Tribunal. Unfortunately, his appeal was dismissed. Subsequently, the Recovery Officer issued a notice to attach his bank accounts, leading to the ongoing legal proceedings.
Read & Download the Full G.Moorthi Vs. The Recovery Officer
