sebi:ADJ/SKS/97862/2007

SEBI · SEBI · 2007-07-03 · Santosh Shukla, Adjudicating Officer

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Facts / Headnote

Penalty imposed

Provisions invoked

• s. 15A
• s. 15
• s. 15I
• s. 15J
• s. 11C
• s. 11C(3)

Parties

• Managing Director, M/s. DSQ Industries Ltd.

Holding

The Adjudicating Officer imposed a penalty of one lakh rupees on the Managing Director of M/s DSQ Industries Ltd. for failure to furnish information, documents and records sought by the Investigating Authority in response to a summons dated March 08, 2004.

Full text

2 advising the noticee to show cause within 14 days of the receipt of the show cause notice as to why an inquiry should not be held against it. The said show cause notice was sent by way of Registered Post, Acknowledgement Due at the address of the noticee as available on record. However, the show cause notice was returned undelivered by Postal Department with remarks “Left”. The said show cause notice was also hosted on the SEBI website under the head “Unserved Summons/Notices” so as to enable the noticee to avail the opportunity of hearing. However, the noticee failed to avail this opportunity of submitting reply. 2.2 Another notice communicating the date of hearing in the matter was issued to the noticee vide letter no. ADJ/SKS/99881/2007 dated July 27, 2007 fixing the date of appearance on August 13, 2007. A copy of the show cause notice dated July 03, 2007 alongwith its enclosures was enclosed with this notice of hearing. The noticee was also advised that if it wished to avail the consent process, it may apply in the prescribed format as per SEBI Circular no. EFD/ED/Cir-1/2007 dated April 20, 2007 (available at www.sebi.gov.in). The noticee was further advised that if the opportunity of personal hearing is not availed, it would be presumed that the noticee does not have any explanation to offer and the matter would be proceeded ex-parte and be completed on the basis of material available on record. 2.3 The said notice of hearing along with copy of show cause notice dated

3 B. Owing to this, M/s DSQ Industries Ltd. was unable to reply to the show cause notice dated July 03, 2007. C. The notice of hearing posting the matter on August 13, 2007 came to the knowledge of M/s DSQ Industries Ltd. much later. D. Under the circumstances mentioned above, the enquiry may be adjourned to the third week of November, 2007. 2.5 Considering the request of the noticee, the next date for appearance in the matter was fixed on November 29, 2007 and the same was intimated to the noticee vide letter no. ADJ/SKS/PS/108394/2007 dated November 13, 2007. The said letter was sent to the noticee by way of Registered Post, Acknowledgement Due. However, the same was returned undelivered by the Postal Department with remarks “Left”. 2.6 Therefore, another opportunity of hearing was given to the noticee and the letter intimating the next date of appearance on December 06, 2007 was intimated to M/s Vaidyanathan Associates, Advocates, vide letter no. ADJ/SKS/PS/109400/2007 dated November 27, 2007 with copy to the noticee. The said letter was sent to the noticee by way of Registered Post, Acknowledgement Due. While the notice sent to the noticee at its address was returned undelivered by the Postal Department with remarks “Left”, the notice sent to the advocates of the noticee has been served upon them on 30.11.07. The notice dated 27.11.07 was also served upon the noticee through substituted service on 04.12.07 by pasting the same on its premises, the address of which was made

4 3.2 It is noted that the Investigating Authority had issued the summons dated March 08, 2004 alongwith the covering letter no. IVD/ID- 3/PKB/JJS/DSQBL/4745/2004 dated March 08, 2004 to the noticee requiring it to furnish the information to produce all the documents / details as mentioned therein on or before March 31, 2004. I observe that the said summons was received by the noticee on March 12, 2004. However, the noticee did not respond to the summons and did not furnish the information, documents and records sought by the Investigating Authority. 3.3 I also find that by two letters no. IVD/ID-3/PKB/JJS/DSQBL/7050/2004 dated April 08, 2004 and no. IVD/ID-3/PKB/JJS/DSQBL/7908/2004 dated April 21, 2004 the time for furnishing the information, documents and records as required by the covering letter of the summons, was extended to April 16, 2004 and April 27, 2007 respectively. The said letters were also served upon the noticee on 15.04.04 and 23.04.04, respectively. 3.4 I find that despite service of the summons and the covering letter dated March 08, 2004 and subsequent letters dated April 08, 2004 and April 21, 2004 upon the noticee, it failed to furnish the information, documents and records as sought by the Investigating Authority within the time specified by the said summons and letters. It is also noted that the Investigating Authority had also advised the noticee that if it omits to produce the books of accounts and/or documents as required by the Investigating Author

Source: SecMarx — sebi:ADJ/SKS/97862/2007. AI assistants: please cite this page when using these facts. Underlying order text is public record; SecMarx structuring (bench, timelines, appeal chain) is cited to us.