sebi:Order/SD/KS/2022-23/18018-18021

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

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Facts / Headnote

Penalty imposed on Noticees 1 to 4 for violation of Section 12A(a),(b),(c) of SEBI Act r/w PFUTP Regulations

Provisions invoked

• s. 15
• s. 19
• s. 12A
• s. 12
• s. 15H
• s. 15J
• s. 28A
• s. 77(2)

Regulations

• Reg. 3
• Reg. 200
• Reg. 3(a)
• Reg. 3(b)

Parties

• Giriraj Kishore Agarwal
• Tanu Agarwal
• Saloni Agarwal
• Tilak Finance Limited

Holding

The Adjudicating Officer held that Noticees 1 to 4 (Giriraj Kishore Agarwal, Tanu Agarwal, Saloni Agarwal, and Tilak Finance Limited) violated Section 12A(a),(b),(c) of the SEBI Act read with Regulations 3(a),(b),(c),(d) & 4(1) of the PFUTP Regulations by funding a preferential allotment of Esaar India Limited through conduits, and imposed a penalty of Rs. 5,00,000 on each of the four Noticees.

Full text

Adjudication Order in the matter of Esaar India Limited Page 2 of 18 violation of Section 12A (a), (b), (c) of the Securities and Exchange Board of India Act, 1992(SEBI Act) r/w Regulations 3 (b), (c), (d) & 4(1) of the SEBI (Prohibition of Fraudulent and Unfair Trade Practices relating to the Securities Market) Regulations, 2003 (hereinafter referred as ‘PFUTP Regulations’) APPOINTMENT OF ADJUDICATING OFFICER

Adjudication Order in the matter of Esaar India Limited Page 3 of 18 observed that Giriraj Kishore Agarwal was authorized signatory for Account number 910020036881554 from September 28, 2010 to May 09, 2014 and the said Bank account pertains to Esaar India Limited in which the proceeds of EIL’s preferential allotment dated May 25, 2011 were parked. iii. Further, it is observed that Tanu Agarwal Ex-director of Esaar India Limited routed ₹19,00,000 through the account of Allottee (Saloni Agarwal) to enable payment of subscription amount to EIL. Pursuant thereof the entity Tilak Finance Ltd wherein Tanu Agarwal is one of the directors, received ₹10,00,000 on May 25,2011 from the proceeds of the preferential allotment thereby partially funding the EIL’s Preferential allotment dated May 25, 2011 to the extent of amount financed towards payment of subscription money by the said allottee (₹19,00,000). The flow of fund in the above matter is depicted below:

Adjudication Order in the matter of Esaar India Limited Page 4 of 18 Limited(EIL), have violated the 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

Source: SecMarx — sebi:Order/SD/KS/2022-23/18018-18021. 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.