SEBI Cancels ₹5.21 Lakh Recovery Order After SAT Sets Aside Key Tax Directive
The Securities and Exchange Board of India (SEBI) has formally cancelled a significant Recovery Certificate (RC 7645 of 2024) issued to Pranav Dipak Desai and Kokila Dipak Desai. This cancellation follows a crucial ruling by the Securities Appellate Tribunal (SAT) that set aside the original assessment order.The cancellation, effective May 11, 2026, marks a reversal of the payment mandate for a sum of ₹5,21,000, plus associated interest and charges. The action was taken by SEBI utilizing its inherent powers under the SEBI Act, 1992, and the Income-tax Act, 1961.
Trigger for Recovery Certificate Issuance
The original recovery directive stemmed from an order issued by the Assessing Officer (AO) on November 29, 2023. This order pertained to a complaint filed by Finsec Law Advisors Ltd on behalf of Aeqitas.The initial recovery certificate, RC 7645 of 2024, had been drawn against Pranav Dipak Desai (PAN: AAAPD7367H) and Kokila Dipak Desai (PAN: AAGPD1109H). The certificate stipulated recovery of ₹5,21,000 (Rupees Five Lakh Twenty-One Thousand only), along with accumulated interest, costs, and expenses related to the penalty imposed by the AO.
Role of the Securities Appellate Tribunal
The legal process gained momentum when the individuals challenged the original AO Order dated November 29, 2023. This challenge was filed before the Securities Appellate Tribunal (SAT) in Appeal No. 138 of 2024.The SAT intervened and, in its Order dated September 23, 2025, allowed the appeal. This landmark decision specifically set aside the initial AO Order dated November 29, 2023.
SEBI Formalizes Cancellation of Recovery Demand
Following the favorable judgment from the SAT, SEBI proceeded to formally conclude the matter. The cancellation of Recovery Certificate No. 7645 of 2024 was issued by the Recovery Officer at SEBI headquarters in Mumbai on May 11, 2026.This institutional action was necessitated by the legal ruling, allowing SEBI to exercise powers under section 28A (1) and 28B (1) of the SEBI Act, 1992. The formal cancellation means the recovery demand initially imposed against the Desai couple is now voided by the regulatory body.
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