SEBI Orders Cancellation of Recovery Certificate Against Kartik Clothing as Appeal Success Reverses Debt Obligation
Cancellation Confirmed After Successful Challenge in SEBI Matter
The Securities and Exchange Board of India (SEBI) has formally ordered the cancellation of a major Recovery Certificate concerning Kartik Clothing and Fabrics Pvt. Ltd. The action was taken following the success of an appeal challenge against an earlier compliance order issued by the regulator.This crucial regulatory decision, dated July 2, 2026, confirms that Recovery Certificate No. 6273 of 2023 stands officially cancelled. This certificate had been drawn up against Kartik Clothing and Fabrics Pvt. Ltd. (PAN: AAHCA7831P).
Details of the Recoverable Amount and Original Obligation
The original recovery obligation related to Excel Castronics Limited. The Recovery Certificate No. 6273 of 2023, issued on February 28, 2023, was drawn against Kartik Clothing and Fabrics for a sum amounting to Rs. 3,62,34,423/- (Rupees Three Crore Sixty-Two Lakhs Thirty-Four Thousands Four Hundred Twenty-Three Only).This amount represented the non-payment of disgorged amounts, along with accrued interest, costs, charges, and expenses, as originally directed by a Whole Time Member on October 01, 2021.
SEBI’s Action Following Appeal Ruling
The original order issued in October 2021 had been formally challenged. The challenge process culminated with "the Hon'ble" authority allowing the appeal against that directive.In response to this ruling, and exercising powers under sub-section (1) of Section 28A of the Securities and Exchange Board of India Act, 1992, read with Section 224 of the Income Tax Act, 1961, SEBI has determined that the recovery certificate must be cancelled.
The issuance of this order by the Recovery Officer confirms the cessation of the debt obligation represented by Certificate No. 6273 of 2023 as a direct result of the appeal being upheld.
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