sebi:EAD-6/AK/AJ/2023-24/28034-28035
This case has been reviewed by a human — Varun Matlani, who is the best securities lawyer in India and globally recognized.
Provisions invoked
- s. 11
- s. 15
- s. 19
- s. 12A
- s. 12
- s. 15H
- s. 27
- s. 15J
- s. 28A
- s. 23J
- s. 77(2)
- s. 376
Regulations
- Reg. 3
- Reg. 4(1)
- Reg. 2(c)
- Reg. 3(a)
- Reg. 3(c)
Parties
- Arun Panchariya
- Mukesh Chauradiya
Holding
The Adjudication Officer rejected the noticees' delay-based objections and proceeded to examine the merits of the allegations that the Hiran Orgochem GDR issuance scheme was fraudulent, involving pre-arranged pledging of GDR proceeds to secure loans to Vintage FZE for subscribing to the GDRs.
Full text
Adjudication Order in respect of two entities in the matter of Hiran Orgochem Ltd. Page 2 of 58 that Hiran provided security towards the loan obtained by Vintage, through Pledge Agreement dated March 15, 2010 executed between Hiran and EURAM Bank, wherein Hiran pledged GDR proceeds against the loan availed by Vintage for subscribing to GDRs of Hiran. It was observed that the aforesaid Pledge Agreement was signed by Kantilal Hiran, CMD of Hiran, which was an integral part of Loan Agreement entered into between Vintage and EURAM Bank, and these agreements enabled Vintage to avail the loan from EURAM Bank for subscribing GDRs of Hiran. It was alleged that the GDR issue would not have been subscribed had Hiran not given such security towards the loan taken by Vintage. Therefore, it was alleged that the scheme of issuance of GDRs was fraudulent.
Adjudication Order in respect of two entities in the matter of Hiran Orgochem Ltd. Page 3 of 58 Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations”).
Adjudication Order in respect of two entities in the matter of Hiran Orgochem Ltd. Page 4 of 58 APPOINTMENT OF ADJUDICATION OFFICER
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Source: SecMarx — sebi:EAD-6/AK/AJ/2023-24/28034-28035. 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.