The bench led by Justice Tarun Agarwala observed, " The appellants have not violated Regulation 11 (1) of the Substantial Acquisition of Shares and Takeovers Regulations, 2011. The imposition of penalty upon the appellants is without any authority of law. Consequently, the SEBI order cannot be sustained and is therefore quashed, and the appeal is allowed. " The tribunal added that the penalty amount was deposited with the market regulator. Since the order was set aside, SEBI is directed to refund Rs.25 crore to all entities within four weeks. The bench observed that even if the violation had occurred, a maximum penalty of Rs.5 lakh could be imposed. The order came after an appeal was filed by the Ambanis and Reliance Industries challenging the 2021 SEBI order. Reliance Industries Ltd (RIL) had issued shares worth Rs.12 crores to 38 entities in 2000 as a conversion of warrants, which SEBI deemed a breach of takeover regulations.