sebi:MC/CB/2018-19/1645-1647

SEBI · SEBI · 2013-03-25 · Maninder Cheema, Adjudicating Officer

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Facts / Headnote

Noticees held liable for unregistered collective investment scheme and non-compliance with SEBI direction; penalty of Rs.1,00,00,000 under Section 15D(a) and Rs.50,00,000 under Section 15HB imposed jointly and severally

Provisions invoked

• s. 11B
• s. 11A
• s. 24
• s. 19
• s. 12
• s. 15H
• s. 15I
• s. 15J
• s. 15D
• s. 131

Regulations

• Reg. 65
• Reg. 3

Parties

• Maitreya Services Private Limited
• Mrs. Varsha Madhusudan Satpalkar
• Mr. Janardan Arvind Parulekar

Holding

The schemes/plans of Maitreya Services Private Limited are collective investment schemes run without SEBI registration in violation of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations, and the Noticees failed to comply with the SEBI wind-up and refund Order dated March 25, 2013, attracting monetary penalty under Sections 15D(a) and 15HB jointly and severally.

Full text

Adjudication Order in the matter of Maitreya Services Private Limited Page 2 of 17 Limited by examining the memorandum and articles of association of the Maitreya Services Private Limited, details of its present and past directors, details of various schemes / offers made to the public, relevant application forms submitted and registration letters issued thereunder, details of funds mobilized from investors under those schemes / offers, details of regulatory approvals obtained etc. Examination prima facie revealed the activities of the Maitreya Services Private Limited to be in the nature of unregistered collective investment scheme.

Adjudication Order in the matter of Maitreya Services Private Limited Page 3 of 17 Noticees for the alleged violations of Section 12(1B) of the SEBI Act and Regulation 3 of the CIS Regulations and SEBI Order dated March 25, 2013.

Adjudication Order in the matter of Maitreya Services Private Limited Page 4 of 17 unit was to remain exclusive property of the Noticee 1. Finally, the plan / scheme also entailed that allotment of land under the scheme / plan would entirely be at discretion of the Noticee 1 which also had right to reject any application without assigning any reason. c) Thus, it was alleged that the Noticee 1 collected contributions from investors and pooled and utilized these contributions under the pretext of development of properties by construction of buildings, both commercial and residential wherein, the investors made contributions / investments in aforesaid plans / schemes with a view to receive profits, income, produce or property and these investments were managed solely by the Noticee 1 on behalf of applicants / investors and the latter did not have any day-to-day control over the management or operation of the aforesaid plans / schemes. d) It was also alleged that the Noticee 1 did not seek any registration for the aforesaid activity which was in the nature of a collective investment scheme. This alleged act of carrying on an unregistered collective investment scheme by the Noticee 1 and its directors, Noticee 2 and Noticee 3 was in contravention of Section 12(1B) of the SEBI Act & Regulation 3 of the CIS Regulations. e) It was also mentioned in the SCN that SEBI, in exercise of powers under Section 11B and 19 of the SEBI Act read with Regulation 65 and 73 of the CIS Regulations i

Source: SecMarx — sebi:MC/CB/2018-19/1645-1647. 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.