sebi:IVD-ID5/ESL-MI/AO/DRK/ASG/EAD3-303/69-2011
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Facts / Headnote
Noticee found liable ex-parte; consolidated penalty of Rs 2,41,00,000 imposed
Provisions invoked
- s. 15A
- s. 15
- s. 15H
- s. 15J
- s. 11C(3)
- s. 11C(5)
Regulations
- Reg. 3
- Reg. 4(2)(f)
Parties
- Mahadev Impexs
Holding
Mahadev Impexs aided and abetted ESL in diverting Rs 2 crores from ESL's IPO proceeds in violation of Sections 12A(a), (b) and (c) read with Regulations 3(a)-(d) and 4(1) of the PFUTP Regulations and violated Section 11C(3) by non-cooperation, and a consolidated penalty of Rs 2,41,00,000 under Sections 15HA and 15A(a) was imposed.
Full text
Page 2 of 12 in the IPO of ESL. In this regard, it was noted from the findings of the IR that ESL had taken ICD/ loans for a total of ` 4 crores from 5 entities during the period from January 20 to February 05, 2009 and that immediately after receipt of the proceeds of IPO, the loans were re-paid with interest from the proceeds of the issue on February 27, 2009. It was observed in the IR that ESL had informed vide its letters dated May 26, 2010 and July 28, 2010 that the loans were borrowed for meeting the project expenditure. However, It was alleged in the IR that the amounts received from the loans/ ICDs were paid to certain entities, including Mahadev Impexs (hereinafter referred to as ‘the noticee’).
Page 3 of 12 the noticee. The SCN was Returned Undelivered by the Postal Authorities with the remark ‘No such company’. 5. Subsequently, the copy of the SCN was forwarded to ESL for delivery to the noticee. Vide its letter dated August 16, 2011 ESL replied that it had forwarded the SCN to the last known address of the noticee, however, the proof of delivery was not provided by ESL. In view of the same, SEBI Southern Regional Office (hereinafter referred to as ‘SRO’) was requested to effect substituted service of the SCN. Vide letter dated August 29, 2011 SRO informed that since the entity was not available at the address mentioned in the SCN, the SCN was affixed at a prominent place of the said premises duly witnessed by two persons. The necessary certificate of affixture was forwarded by SRO.
Page 4 of 12 Mahadev Impexs/”. The noticee again failed to appear for the final hearing without furnishing any reasons for the same.
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Source: SecMarx — sebi:IVD-ID5/ESL-MI/AO/DRK/ASG/EAD3-303/69-2011. 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.