Appellate Tribunal Reduces Penalty Imposed on Tamilnad Mercantile Bank Limited
Tamilnad Mercantile Bank Limited has received an order from the Appellate Tribunal under SAFEMA, New Delhi, which significantly reduces a penalty previously imposed on the bank and its former officers. The tribunal's order, received on July 16, 2026, follows an appeal filed by the bank and its then Directors and Company Secretaries against an adjudication order dated August 14, 2020.The original penalty was issued by the Special Director of the Directorate of Enforcement following a Show Cause notice dated December 17, 2014. The matter pertained to alleged contraventions of FEMA Regulations regarding the recording of share transfers.
The Appellate Tribunal's decision has resulted in a substantial reduction of the financial penalties. Specifically, the penalty imposed on the bank was reduced from Rs.17.00 crores to Rs.3.40 crores. Additionally, the tribunal ordered a substantial reduction in the penalties originally imposed on the then Directors and Company Secretaries.
Financial Impact and Refund Details
The bank had already deposited the full amount of Rs.17.00 crores with the Directorate of Enforcement at the time of filing its appeal. Following the favorable ruling from the Appellate Tribunal, the bank is now eligible for a refund of the excess amount.| Category | Details |
|---|---|
| Original Penalty Amount | Rs.17.00 crores |
| Revised Penalty Amount | Rs.3.40 crores |
| Refundable Amount | Rs.13.60 crores |
The bank is currently in the process of examining the specific order issued by the Appellate Tribunal and intends to take appropriate steps regarding the refund of the Rs.13.60 crores in due course.
TMB Stock Price Movement
Tamilnad Mercantile Bank Limited shares today shed 1.99% to settle at ₹797.5 after falling from the previous day's close. The stock reached its 52-week high of ₹821.2 during the session, with a total volume of 172,839 shares traded.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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