sebi:Order/SM/SM/2019-20/7197-7203
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Facts / Headnote
Penalty of Rs. 3,00,00,000 imposed jointly and severally - Rs. 2,00,00,000 under Section 15HA and Rs. 1,00,00,000 under Section 15HB - payable within 45 days
Provisions invoked
- s. 11
- s. 15
- s. 11(1)
- s. 12
- s. 15H
- s. 15J
Regulations
- Reg. 3
- Reg. 4(2)
- Reg. 200
- Reg. 4(2)(t)
Parties
- Garima Real Estate & Allied Ltd.
- Mr. Balkishan Kushwah
- Mr. Banwarilal Kushwah
- Mr. Shivram Kushwah
- Mr. Banabarilal Lodhi
- Mr. Bijendra Pal Singh
- Mr. Jitendra Kumar
Holding
The Noticees violated regulation 4(2)(t) of the PFUTP Regulations read with section 12(1B) of the SEBI Act and regulation 3 of the CIS Regulations by mobilizing funds through unregistered Collective Investment Schemes, and failed to comply with the SEBI Order dated May 3, 2016 to wind up and refund. A total monetary penalty of Rs. 3,00,00,000 was imposed jointly and severally under sections 15HA and 15HB of the SEBI Act.
Full text
Page 2 of 11 therein viz., Dharmvir Singh had filed a Public Interest Litigation seeking order of enquiry against various financial companies including Garima Real Estate & Allied Ltd. (hereinafter referred to as “Garima”). The petitioner had alleged that thousands of residents of State of Madhya Pradesh have been cheated by various companies/finance companies under the garb of various schemes, inducing investors/public to make deposits promising higher return of interest ranging from 15- 20%. The Hon'ble High Court directed that copy of the Order dated July 13, 2012 shall be forwarded to the various authorities including SEBI to take appropriate action in accordance with law.
Page 3 of 11 and make repayments to the investors and submit a Winding Up and Repayment Report to SEBI. APPOINTMENT OF ADJUDICATING OFFICER
Page 4 of 11 was clearly indicated that in case of failure to submit reply or to appear for the hearing, the case would be decided ex-parte on the basis of the material available on record.
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Source: SecMarx — sebi:Order/SM/SM/2019-20/7197-7203. 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.