sebi:Order/GR/KG/2020-21/10594-10596
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Facts / Headnote
Penalty of Rs. 15,00,000 imposed on the Noticees jointly or severally for unregistered CIS activity
Provisions invoked
- s. 11A
- s. 15
- s. 19
- s. 12(1)
- s. 12
- s. 15H
- s. 15J
- s. 28A
- s. 30
- s. 58A
- s. 620A
- s. 45
- s. 4(2)
Regulations
- Reg. 3
- Reg. 4
- Reg. 200
- Reg. 4(2)(t)
Parties
- VAYAA BUILDER AND DEVELOPERS PRIVATE LIMITED
- YOGENDRA BISAY
- JITENDRA BISAY
Holding
The Noticees operated an unregistered Collective Investment Scheme in violation of Section 12(1B) of the SEBI Act read with Regulation 3 of the CIS Regulations and Regulation 4(2)(t) of the PFUTP Regulations and are liable for penalty under Section 15HA, with Rs.15,00,000 imposed jointly or severally.
Full text
Order in the matter of Vayaa Builder and Developers Pvt. Ltd. And Two Directors Page 2 of 22 different land/plot allotment scheme under the garb of a real estate business and thereafter company had closed its office and had failed to repay the investors their invested amount.
Order in the matter of Vayaa Builder and Developers Pvt. Ltd. And Two Directors Page 3 of 22 unregistered Collective Investment Scheme (hereinafter referred to as “CIS”) in violation of Section 12 (1B) of the SEBI Act, 1992 (hereinafter referred to as the “SEBI Act”) and Regulation 3 of the SEBI (Collective Investment Schemes) Regulations, 1999 (hereinafter referred to as “CIS Regulations”) and that the fund mobilizing activity of Noticee No.1 through the scheme of allotment of land post September 2013 prima facie amounted to a fraudulent practice in terms of Regulation 4(2)(t) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices Relating to Securities Market) Regulations, 2003 (hereinafter referred to as “PFUTP Regulations, 2003”).
Order in the matter of Vayaa Builder and Developers Pvt. Ltd. And Two Directors Page 4 of 22 a) Whether the Noticees have been running a scheme in the nature of a Collective Investment Scheme without obtaining certificate of registration from SEBI, thereby violating section 12(1B) of the SEBI Act read with Regulation 3 of the CIS Regulations and section 4(2)(t) of the PFUTP Regulations?
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Source: SecMarx — sebi:Order/GR/KG/2020-21/10594-10596. 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.