sebi:Order/KS/VC/2019-20/6636

SEBI · SEBI · 2018-12-21 · K Saravanan, Chief General Manager and Adjudicating Officer

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Facts / Headnote

Partially discharged on some allegations; proceedings continued on merits despite IBC moratorium objection

Provisions invoked

Regulations

Parties

Holding

The adjudication proceedings against DSKDL under Section 23A(a) and 23E of SCRA were not stayed despite the IBC moratorium, as the proceedings determine liability rather than enforce recovery. The Noticee was discharged from the allegation of non-disclosure of loan defaults due to lack of specific evidence, and no violation was found regarding NCD interest payment/redemption disclosures.

Full text

Page 2 of 35 the information regarding default on payment of loans by the Company and its promoters since March 2016. 2. The Noticee was incorporated as a Public Limited Company on 20th September, 1991, having its registered office at Pune. The Company is listed on Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) (hereinafter collectively referred to as ‘exchanges’) since September 25, 2000. The company is engaged in the business of real estate development primarily in Pune. The Noticee was promoted by Mr. D. S. Kulkarni.

Page 3 of 35 2015 (hereinafter referred to as ‘SEBI Circular’); read with Regulation 4(1)(h), (i), (j) and 4(2)(b), (e) of LODR Regulations.  Regulation 30(1), Regulation 30(2) and Regulation 30(6) read with clause 3 of Para A of Part A of Schedule III of LODR Regulations and clause 3 of Para A of Annexure I of the SEBI circular; read with Regulation 4(1)(h), (i), (j) and 4(2)(b), (e) of LODR Regulations.  Regulation 30(1), Regulation 30(3), Regulation 30(4)(ii) and Regulation 30(6) read with clause 8 of Para B of Part A of Schedule III of LODR Regulations and clause 8 of Para B of Annexure I to the SEBI circular; read with Regulation 4(1)(h), (i), (j) and Regulation 4(2)(b), (e) of LODR Regulations.  Regulation 30(10) of LODR Regulations Accordingly, adjudication proceedings have been initiated against the Noticee under Section 23A(a) and Section 23E of Securities Contracts (Regulation) Act, 1956 (hereinafter referred to as ‘SCRA’). APPOINTMENT OF ADJUDICATING OFFICER

Page 4 of 35 provisions of Rule 4(1) of the Adjudication Rules, to show cause as to why an inquiry should not be held against it and why penalty, if any, should not be imposed on it under the provisions of Sections 23A(a) and 23E of SCRA for alleged violation of the relevant provisions of law.

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Source: SecMarx — sebi:Order/KS/VC/2019-20/6636. 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.