sebi:AO/SBM/EAD-3/136-139/2018
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Facts / Headnote
Penalty of Rs 50,00,000 imposed jointly and severally on the Noticees for failure to comply with Interim Order dated September 17, 2014
Provisions invoked
- s. 11A
- s. 11
- s. 15
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 65
- Reg. 3
- Reg. 4(2)(t)
Parties
- SPNJ Land Project and Developers India Ltd.
- Mr. Raj Kumar Banerjee
- Ms. Dolly Banerjee
- Ms. Mausami Banerjee
Holding
The Noticees mobilized funds to the tune of at least Rs 1.38 crores after the Interim Order dated September 17, 2014 in violation of its directions, and are therefore liable under Section 15HB of the SEBI Act with a joint and several penalty of Rs 50,00,000.
Full text
Page 2 of 29 order dated September 17, 2014, issued under the provisions of sections 11(1),11(4) and 11B of the SEBI Act , 1992 ( hereinafter referred to as ‘SEBI Act’) r/w Regulation 65 of SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as ‘CIS Regulations’) , prima facie, observed that SPNJ was engaged in illegal fund mobilizing activities from the public, which falls within the ambit of Collective Investment Scheme (hereinafter referred to as ‘CIS’) as defined under Section 11AA of the SEBI Act. It was observed by SEBI that SPNJ had undertaken these activities without obtaining a certificate of registration from SEBI as required under the provisions of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations. The mobilization of funds by SPNJ through its schemes, were also prima facie found to be a fraudulent practice in terms of Regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practice Relating to Securities Market) Regulations, 2003 (hereinafter referred to as ‘PFUTP Regulations’).
Page 3 of 29 3. However, SEBI received complaints enclosing copies of registration certificates issued by SPNJ showing acceptance of installment amounts subsequent to the date of interim order in certain cases. In certain other cases, the complainants have provided copies of the payment receipts issued by SPNJ indicating that the company had accepted amounts from the public even after the date of the interim
Page 4 of 29 'Adjudication Rules') to inquire into and adjudge under the provisions of Section 15HB of the SEBI Act, the alleged non-compliance by the Noticees of the
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Source: SecMarx — sebi:AO/SBM/EAD-3/136-139/2018. 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.