In Brief
This case addresses a dispute spanning 20 years concerning SEBI's handling of Vital Communications Limited's (VCL) alleged misleading advertisements and fraudulent share transactions. After SEBI's 2014 final order imposing market access restrictions, SEBI attempted in 2018 to pass a second order on the same cause of action directing disgorgement of unlawful gains. The Supreme Court held that once a final administrative order attains finality, the authority cannot reopen and pass fresh orders on the same cause of action—a principle rooted in res judicata applicable to all authorities. The Court set aside both the 2018 disgorgement order and the Tribunal's subsequent direction to compensate affected investors, finding these violated finality. It also set aside the Tribunal's award of costs to the fraudulent entities.
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