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10. Legal cases, frauds & declarations ⛔

Sources: SEBI Interim Order 28-Feb-2024, SEBI Confirmation Order 30-Jul-2024, Business Standard, Moneylife, Taxguru, V-Marc Annual Secretarial Compliance Report FY26 (19-May-2026), screener.in

⛔ This card carries the v2 Principle 5 HARD STOP. Two material regulatory orders are open against V-Marc's Promoter Chairman/MD Vikas Garg and 13 other connected entities, in V-Marc's own shares.

SEBI matter — full chronology

DateEvent
9-Apr-2021V-Marc lists on NSE-SME at ₹39 (face value ₹10)
9-30 Apr 2021Period of alleged price-volume manipulation (22-day window post-listing)
21-Sep-2022SEBI complaint filed — surveillance-triggered alert
May-2022SEBI search · Prijesh Kurani's mobile seized containing WhatsApp + signed agreement
28-Feb-2024SEBI Interim Order — 14 entities banned, ₹6.38 Cr wrongful gains impounded
May-2024Vikas Garg appealed to Securities Appellate Tribunal (SAT)
May-2024SAT directed SEBI to issue confirmatory order within 4 weeks (extended to 30-Jul-2024)
30-Jul-2024SEBI Confirmation Order — order affirmed with modifications; wrongful gains revised to ₹6.30 Cr
2024 → 2025 → 2026Matter sub judice in SAT
19-May-2026V-Marc's FY26 Annual Secretarial Compliance Report: "no non-compliance; promoter SEBI matter remains sub judice"

14 noticees named in the SEBI order

NoticeeRoleModified liability
Vikas GargPromoter, Chairman, MD — "devised and orchestrated a scheme for price-volume manipulation"Jointly/severally liable with Aggarwal, Gupta, Singhal
Sandeep SrivastavaFormer Whole-Time Director · facilitated fund transfers · resigned Feb-2022
Prijesh KuraniMarket operator engaged "to operate the market"
Sudhir GuptaIPO subscriber + post-listing funder₹1.89 Cr
Surbhi AggarwalVolume / price manipulator₹3.53 Cr
Rekha KuraniConnected entity₹87.74 lakh
Jai Kishorr SinghalPost-listing funder₹7.82 lakh (deposited)
Dharini KuraniIPO subscriber creating artificial volume
Pratik Madhukar ShethPre-IPO private placement 8.40 lakh shares + family IPO subsShare transfer restrictions
Jinal Pratik ShethConnectedShare transfer restrictions
Madhu SrivastavaRelative of Sandeep
Seema GargRelative of Vikas
Seema AgarwalConnected
Vinod Vilas SableConnected

SEBI's findings — the manipulation scheme

MetricSEBI Finding
Period22-day window: 9-30 Apr 2021 (immediately post-listing)
Manipulator share of gross market purchase85.86%
Manipulator share of net market purchase92.40%
Artificial volume17.63% of total trading volume (3.03 lakh shares traded among manipulators)
Self-trade price impact22 self-trades pushed price up by ₹40.60 = 35.41% of gross positive price movement
Connected-entity IPO allocation30.70% of IPO (18.42 lakh of 60 lakh shares) — suggests pre-planned scheme
Pattern after manipulation"Six connected entities completely sold holdings; shares offloaded to retail investors oblivious of the manipulative scheme"

Key quotes from SEBI's order

"When promoters such as Vikas Garg themselves indulge in cynical and egregious manipulation...they are striking at the core trust of investors."
"The entire initial public offering of V Marc itself has come under a cloud of suspicion warranting further investigation."
"The promoter and management...devised a scheme prior to listing...orchestrated fraudulent activity of manipulation of volume and price" enabling "sale of shares at inflated prices to unsuspecting investors."

Evidence base

Other litigation

v2 Principle 5 application

Principle 5 (preserved from v1 in v2):
"Non-ethical = exit — Lawsuit, fraud, regulatory action with material consequence = IMMEDIATE EXIT. No second chances. Hard rule."
V-Marc satisfies every element: Sub-judice status does NOT soften the rule. The framework's design is "no second chances" — the rule applies as long as the matter is unresolved against the company.

Comparison: V-Marc vs Yash on legal axis

DimensionYash HighvoltageV-Marc India
Regulatory action against companyNILNIL (against entity itself)
Regulatory action against promoterNILSEBI confirmed fraud finding
Criminal casesNILNIL
Civil casesNILNIL disclosed
SEBI / regulatory actionNILYES — 14 entities
Tax / Indirect-tax appeals3 trivial ₹49.8 lakhNot surfaced
Audit qualificationsUnmodified FY24-26Compliance report flags SEBI matter
CARO 2020 paragraphsClean across all 21Not directly captured
Cyber fraud / BEC₹2.10 Cr declared (Mar-26) — Yash was VICTIMNot surfaced
Same-day Reg 30 disclosure of material eventsBest-in-class (cyber fraud)Not directly evaluated
Fugitive-offender associationNoneNone
Net legal verdictCleanHARD STOP active