An International Arbitration Court has given a big blow to former head of market regulator SEBI M Damodaran. A fine of more than Rs 200 crore has been imposed on him due to breach of contract law suit.
Damodaran will have to pay this much
According to a report in Business World, SEBI The former chief has been asked to pay a fine of $24.84 million in the case. This amount of fine in Indian currency comes to around Rs 206 crore. According to the report, this fine has been imposed in a case related to uphealth and glocal healthcare systems. This fine has been imposed by the International Court of Arbitration in America.
Total fine of Rs 920 crore
Uphealth is a company listed on the New York Stock Exchange. Former SEBI chief M Damodaran is a shareholder in Glocal Healthcare Systems. Apart from Damodaran, fine has also been imposed on Glocal Healthcare Systems, its promoters, major shareholders and directors. According to the report, the court has imposed a total fine of 110.2 million dollars i.e. about Rs 920 crore.
This is the reason for the ongoing controversy
This case has been filed by Uphealth in Glocal Healthcare Systems. Is related to buying stake. Uphealth has claimed in the court that it paid Rs 2,100 crore in cash, stock and debt to buy 94.81 percent stake in Glocal Healthcare Systems. However, even after that the promoters and directors did not give him control of the management. UpHealth alleges that the financial statements of Glocal Healthcare Systems were also not shared with it.
Hearing going on in Chicago Tribunal
Earlier, UpHealth had told an Indian court that As per the terms of the share purchase agreement, during the deal, the parties had agreed to arbitration in the US. Glocal Healthcare Systems was at that time trying to stop Uphealth from going to US arbitration and had approached the Indian court. Currently the case is being heard in the Chicago Tribunal under the banner of the International Chamber of Commerce.
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