The Securities Appellate Tribunal (SAT) has set aside the interim order passed by the Securities and Exchange Board of India (SEBI) against Linde India last month.

SAT has directed Linde India to appear before SEBI on May 27 for inspection of documents and file its reply within one week from the date inspection/supply of documents. The regulator, in turn, has been directed to grant inspection and supply documents immediately.

“The appellant has been directed to file reply within 21 days. SEBI has made a statement before us to pass orders within 30 days from the date of conclusion of hearing and in the event of any adverse order, SEBI is enjoined with all powers to pass appropriate directions including an order of disgorgement,” the tribunal said.

In its interim order passed last month, SEBI had said that the company was executing related party transactions without taking shareholder approval, depriving the latter from expressing their views on transactions that had the potential to benefit controlling shareholders at the expense of the broader shareholder base.

Senior advocate argued that the appellant had been fully cooperating with SEBI and in view of continuous exchange of correspondence, pending consideration of appellant’s reply, there was no imminent hurry in passing the impugned interim order.

The regulator had asked the National Stock Exchange to designate a valuer to conduct the valuation of related party transactions between Linde India and Praxair India.

The complaints alleged that instead of merging Linde India and Praxair, the two entities set up a joint venture structure in India. Pursuant to such integration, the appellant had sought shareholder approval for the related party transactions to be entered with Praxair which was rejected by the shareholders by 93.94 per cent of the votes cast by the eligible shareholders.

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