sebi:Order/SD/KS/2022-23/17536-17537

SEBI · SEBI · 2021-08-23 · Sandeep P Deore, Adjudicating Officer

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Facts / Headnote

Penalty imposed on both Noticees for violation of Section 12A(a),(b),(c) of the SEBI Act, 1992 read with Regulations 3(b),(c),(d) & 4(1) of the SEBI (PFUTP) Regulations, 2003

Provisions invoked

• s. 15
• s. 19
• s. 12A
• s. 15H
• s. 15J
• s. 28A

Regulations

• Reg. 3
• Reg. 3(a)

Parties

• Geetaben Joshi
• Shivshankar Joshi

Holding

The Adjudicating Officer held that Noticees Geetaben Joshi and Shivshankar Joshi violated Section 12A(a),(b),(c) of the SEBI Act, 1992 read with Regulations 3(b),(c),(d) & 4(1) of the SEBI (PFUTP) Regulations, 2003 by financing the subscription to a preferential allotment through Surface Finance Pvt Ltd, and imposed a penalty of Rs. 10,00,000 on each Noticee.

Full text

Adjudication Order in the matter of Esaar India Limited Page 2 of 21 APPOINTMENT OF ADJUDICATING OFFICER 2. The undersigned was appointed as the Adjudicating Officer, vide communique dated August 23, 2021 under Section 19 read with Section 15-I of the SEBI Act read with Rule 3 of SEBI (Procedure for Holding Inquiry and Imposing Penalties) Rules, 1995 (hereinafter referred to as ‘Adjudication Rules’) to inquire into and adjudge under the provisions of section 15HA of the SEBI Act for the aforementioned alleged violation of the provisions of law by the Noticees. SHOW CAUSE NOTICE, HEARING AND REPLY

Adjudication Order in the matter of Esaar India Limited Page 3 of 21 014400100001343 maintained with Dhanlaxmi Bank. It is also observed from the analysis of the bank statement of Noticee-2 that the bank account with account number 014400100001324 had received ₹30,00,000 from bank account with account number 910020041102497 maintained with Axis Bank. On further analysis, it is observed that the account is belongs to Surface Finance Private Ltd and the Authorized signatories for the said bank account are Surface Finance Private Limited., Avinash Arvind Jagushte., Vijay Agarwal., Pradeep Dhanuka iv. It was also observed that the registered e-mail address mapped to the said account is gkagrawal1@gmail.com. As per Form 32 data this email account belongs to Giriraj Kishore Agrawal. It was also observed that Giriraj Kishore Aggrawal was one of the directors of Esaar India Limited for the period of July 2010- March 2011. Thereafter, from the information on MCA website it was observed that the company named Surface Finance Pvt Ltd has been struck-off. v. It is also observed that pursuant to receipt of Rs 30,00,000/- from Surface Finance Private Ltd. by Noticee-2, an amount of ₹15,00,000 was then transferred by him to Noticee-1 in her bank account with account number 014400100001343 maintained with Dhanlaxmi Bank and the same amount was transferred to EIL(the company) from account number 014400100001343. vi. Further, it is observed that EIL vide it letter dated September 19, 2019 info

Adjudication Order in the matter of Esaar India Limited Page 4 of 21 Private Ltd and nature of their association with the Surface Finance. However, no reply has been received in this regard from them. x. In view of these transactions during preferential allotment, it is alleged that Noticee No.1, Noticee No.2 have violated Section 12A(a), (b), (c) of the SEBI Act, 1992 r/w Regulations 3 (b), (c), (d) & 4(1) of the SEBI (PFUTP) Regulations, 2003 for financing the subscription amount paid by the two allottees Noticee-10 and Noticee-11 to the extent of ₹30,00,000 and Subsequently received ₹1,52,00,000 out of Issue Proceeds A/c from the company EIL thereby funding the preferential allotment dated May 25,2011 to the extent of ₹30,00,000

Source: SecMarx — sebi:Order/SD/KS/2022-23/17536-17537. 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.